Can I finance my solar panels?
The cost of converting to solar power can seem steep, but don’t let that deter you from investing in completely clean and renewable energy for your home. Solar power installation costs will differ depending upon the type of property you have, and the number of panels required, and if you need assistance covering the up-front costs, you have several options.
- Solar Lease – Introduced in the early 2000s, solar leasing has become hugely popular with homeowners and business owners across the country. It works the same way as leasing a car: the solar provider owns the equipment, pays for it, and is the legal owner. The solar provider also pays for installation, maintenance, and repairs, while you pay them an agreed fixed monthly amount, like paying a monthly energy bill. The one exception, of course, is that solar leases are typically much cheaper on a monthly basis than traditional energy from a utility company!
- Power Purchase Agreement (PPA) – Similar to a solar lease, a PPA comes with one notable difference: rather than paying a fixed monthly fee to the solar provider, you pay a certain amount for every kWh your system produces. This amount is pre-determined between you and your solar provider.
- Energy Efficient Mortgage (EEM) – An EEM works by crediting your home’s energy efficiency in the mortgage itself, which can be used to finance solar panels.
- Property Assessed Clean Energy (PACE) Program – Some states, including New Jersey, allow homeowners to borrow money from either their city, county, or state, and then pay it back via a higher property tax rate over a certain amount of time, usually 15 to 20 years. You can find out more about New Jersey’s PACE Program here.
- Peer-to-Peer (P2P) Lending – A somewhat new financing system, P2P works by matching borrowers and lenders using crowdsourcing platforms. One advantage of the P2P system is that you, as the borrower, can avoid high transaction fees and other fees banks sometimes charge.
Get more information about power costs
As you can see, there are a handful of financing options when it comes to installing a home solar system. The upfront installation costs may seem high, however, you’ll quickly be enjoying lower monthly energy costs and reducing your environmental footprint. At Greenhouse Solar, we are experts in both residential and commercial solar panel installation, and we would be happy to answer any questions you have, so please contact our team today. Discover why we’re the go-to company in Morris County, NJ, for all your home solar needs. We look forward to hearing from you.