This is by far the most straightforward way of acquiring cash for paying the upfront cost of a solar system. It just makes sense that if you don't have the money, then borrow it. A solar loan is pretty much just like any other home improvement loan, also with similar qualifications. You can approach a bank or lending institution to learn about the different options. You can also go directly to the solar installers as many of them actually offer loans to clients as well.
One of the good things about taking out a solar loan is that you can still qualify for the federal tax credit that comes with owning a solar home. Provided that you meet the lender’s deadline for paying back the amount of the tax credit, you can then apply the tax credit to pay down the balance of your loan.
If you do not mind not owning the solar system that you use and are simply after the energy and environmental savings, then taking out a lease may be a good decision. By signing a lease or a power purchase agreement (PPA), you will authorize the solar panel company to set up a solar system on your home. They will retain ownership of the system and you will pay a fixed monthly fee that is based on the electricity that the system can generate.
Essentially, you will be paying the installer for the electricity generated by the solar panels on your property. This is a monthly cost but one that is still considerably lower than your average electricity bill. Solar leases do not have an upfront cost but they will not qualify you for tax incentives and rebates that you can enjoy if you have ownership of the solar energy system.
As you can see, there are a variety of financing options that you can choose from in order to have a solar-powered home. No matter which of these options you choose, what’s certain is that you will have a more environment-friendly home with a higher market value than before you switched to solar.