Solar panels help you save money on costs on your monthly bills, reduce your carbon footprint, and raise the home’s value. After you’ve decided on solar panels for your residence, you’ll have to decide how you want to pay for them. This blog will discuss some of the different loan and financing options that are available to homeowners in California.
What is Solar Panel Financing?
Solar financing is a type of loan that allows homeowners to get the money they need to buy a solar energy system. Solar financing allows California homeowners to spread the expense of a solar energy system installation for years instead of paying for it all at once.
Options for Financing Solar Panels in California
Several factors separate one loan from the other. The most important are:
- Loan payment length.
- Percentage rate of interest.
- Variable or fixed interest rate.
- Partially or fully amortized.
- Down payments, if available.
- Security to safeguard lenders against nonpayment.
You should double-check each of these lending variables before you ratify anything.
Security is the most crucial distinction between the various forms of solar loans. There are three kinds: secured by your home, unsecured, and semi-secured.
Unsecured Loans
Solar vendors provide almost all unsecured solar loans to purchase a PV system. This is typically where the solar dealer has a financial relationship with lenders to provide this financing. The seller boosts the solar panel’s purchase price, referring to it as a “loan price.” This increase includes loan origination costs to the lending institution, “interest buy down” (paying part of the interest ahead of time to make the stated rate more appealing), and more profits for the seller and lender.
Semi-Secured Loans
Property-Assessed Clean Energy (PACE) is a government scheme in which the cost of your Photovoltaic system is recognized as a property-tax attachment against your house, and you repay it through a yearly evaluation of your real estate taxes. HERO (Home Energy Renovation Opportunity) and California First are the two principal administrators of financing solar panels in California. While the specifics of their agreements change from time to time, their plans are generally the same.
Secured Loans
Naturally, the least costly loans are those that pose the greatest danger to lenders. Security is one of the essential factors that reduce the risk to lenders. This is known as a home-improvement loan because it typically comes in a second loan on your house. If you fail to pay, the lender might require you to sell your home to settle the debt.
Get in Touch With Solar Optimum to Learn More
Individual home and energy needs will determine options for financing solar panels in California. Though one thing is sure: with significant weather occurrences, anticipatory power outages that last a long time, and excessive electricity bills on the West Coast, people need a sustainable, dependable, and cheap alternative. Solar energy systems appear to be the most likely option.
To select the option that best matches your financial and solar energy needs, speak with one of our knowledgeable solar experts. We’ll be there to assist you through every step. Get in touch with Solar Optimum and speak with one of our Energy Coordinators today.
