Are you thinking of switching to solar energy? There are several ways to pay for solar panels along with various qualification requirements, like a specific credit score. So what is the minimum credit score for solar panels in Nevada? It depends on what type of financing you choose.
Credit Score for Solar Panels
Before looking at solar finance solutions, take time to understand your credit. Knowing where you stand will go a long way in helping you navigate the different options. Here is what you need to know regarding the main types of financing.
Cash Purchase
There are many benefits of buying solar panels with cash. If you can afford to pay for solar panels upfront with your own funds, it doesn’t matter if you have a low rating or blank credit record. You simply do not need to prove creditworthiness. As a result, paying cash makes for a simpler purchase process and offers greater flexibility in terms of the type and design of the solar system you can install.
Solar Loans or PPAs
Investing in solar panels is expensive. Considering the high upfront costs involved, many Nevada residents who cannot afford to pay for a solar system out-of-pocket opt for loans or solar power purchase agreements (PPAs). With a solar loan, one of the requirements you must meet to qualify for financing is to have a good credit score. For PPAs, the eligibility criteria will depend on the specific arrangement.
Leasing
Besides the cost of purchasing and installing solar panels, you will also incur maintenance costs. This is why some people prefer leasing solar panels. However, with a solar lease, you may need to meet a certain credit score as well.
Typically, you need at least a 600-650 score for credit and solar financing. However, a credit score is not the only important factor when getting a solar loan or leasing solar equipment. You can still qualify if you have a lower credit score. However, the solar financing is likely to come with stricter terms and conditions.
Alternative Ways To Pay For Solar Panels
If the options above don’t work for you, there are other ways to secure financing for your solar panel installation in Nevada. Below are some alternative options to consider.
Green Bank
Green banks offer innovative financial solutions designed to encourage the adoption and speed up the transition to clean energy. Oftentimes, these institutions offer solar loans to homeowners and businesses at reduced interest rates, longer loan terms and low or no down payment. These flexible loans may be a good option if you do not meet the minimum credit score for solar panels.
Equity Investments
You can tap into the equity of your home and use the money to pay for home upgrades such as adding solar. There are many companies that offer a way to borrow against home equity. For instance, Hometap is a startup FinTech company that allows you to leverage home equity investments to fund solar.
Finance Your Solar With Solar Optimum
Solar Optimum offers various solar panel financing programs for residents in Clark County and the Greater Las Vegas area. You can make direct cash payments or take advantage of our customized loan programs. Our experts have the expertise and experience needed to help you make smart decisions. Contact us today to speak with an energy consultant and learn more about your solar financing options.
