Convenient Solar Financing
Installing a solar system is an expensive investment. Hence one that many homeowners shun. However, with the help of solar financing programs, it is easier than ever. Moreover, you can easily acquire a high-value solar system for as low as 0.99%. In addition, repayment is spread-out to make it affordable for the average person.
The option of early repayment is available with most solar financing. Historically, paying off solar financing early attracted penalties. However, now most financiers are welcoming it. Clearing your solar financing early is beneficial. Firstly, it improves your credit score. Secondly, it increases your debt-income ratio. Lastly it earns you interest cuts.
Increases Your Homes Value
Owning a solar system is beneficial in that it boosts your home value. Consequently, you are able to secure more prospective buyers, in case you decide to sell your home.
Thanks to the convenient solar financing solutions, you can easily make the investment for your home’s value.
The Tax Benefit of a Solar Loan
When you finance your solar system through a loan, you’re subject to federal incentives. More importantly, you can claim a federal tax credit of 26% The cost of installation goes against your tax liability. And if your tax liability is less than 26% of the cost incurred, you can roll the benefit to the years following the installation.
Financing Solar with a Higher Interest Loan vs. Lower Interest Loan
There is no direct answer as to which option is best. You may need to look at several factors before deciding which of the options is the most affordable. Specifically, the first step should be to enquire from the financiers what their fees constitute of.
Some financiers use a low-interest rate to attract borrowers, then impose fees to cover the cost of lending. Looking at what is constituted in the fees and then calculating the entire cost of the loan can help you determine which financier is cheaper.
You may also factor in the possibility of an early loan payoff. More specifically how much you’re likely to save under either of the two options.