Financing Your Massachusetts Solar Panels
Benefits to Financing a Solar Power System
Solar power systems are rapidly becoming the most popular way for homeowners and businesses to generate electricity in an environmentally friendly manner. Solar power is not only very efficient, but also 100 percent renewable.
What’s more, once they are installed, solar panels require very little maintenance, which is another obvious attraction for home owners and businesses alike. Due to the ever-increasing prices of electricity and the growing desire to focus extra efforts into becoming more environmentally friendly, many consumers are implementing sources of renewable energy.
Perhaps the largest issue facing homeowners as well as businesses who wish to implement and operate a solar power system is that the upfront costs of purchase are relatively high. Although there are very many cost savings to be had upon installation, the initial costs involved are too much for most average consumers to handle.
Fortunately however, throughout most states in the U.S., federal, state, as well as local government are now offering tax credits, competitive lending schemes, and a variety of incentives in order to relieve much of the burden of committing to making a purchase. Furthermore, a number of banks are also offering financing in the form of a home improvement loan. Solar power system manufactures and installers also offer financing packages for those who wish to enjoy the benefits on offer.
It remains to be seen then, what are the financial benefits to installing a solar power system either at home or for your business?
You can avoid out-of-pocket expenses
This is the largest benefit to solar financing in that it enables you to avoid a sizeable up-front cost. The concept is akin to paying for a new home. The interest rates are similar and the length of term is also comparable to that of a mortgage, and this makes it a more favorable option for most.
Invest in the optimal solar system for your home or business
Should you have a short-fall in savings or investment money, you can still opt to commit to the optimal solar energy system for your home or business. Financing the purchase allows the shortage of funding gap to be bridged.
Lower interest rates for the duration of the finance
Interest rates are currently near an all-time low which makes financing a solar power system installation a particularly attractive proposition. If you are fortunate to qualify for a local government loan, you may only have to pay interest rates of as little as 1% for the whole financing term.
Utilizing a Bank Loan
Many solar power system buyers opt to finance their purchase through a bank loan. Direct ownership of a solar power system provides for a number of benefits such as flexible payment options, state as well as federal tax credits, and tax deductible interest. There are programs which do not require any home equity in order to qualify. And loan repayments can work out to be less than the amount you save on your monthly electricity bill.