The average cost of installing solar panels in the United States is $12,000. However, this amount will vary depending on how you plan for your solar panel installation.
Using solar panels reduces your energy expenditure and boosts property value. However, the solar panel installation cost can be high and require a substantial upfront investment. As a result, you have to develop the best solar panel financing plan.
There are many ways to plan for your upcoming solar panel cost, such as:
Personal loans are the most preferred way of buying and installing solar systems in homes. They have predictable and low-interest rates that remain constant until you repay the entire loan. In addition, they have a more straightforward application process, and most people receive the funds in one or two days.
Another benefit of personal loans is that they neither charge origination fees nor do they require collateral. Therefore, you don’t have to worry about losing your home because you cannot pay for the personal loan. Nevertheless, the lender may not provide solar panel investment if you have poor credit.
People with poor credit can access personal loans, but they’ll have to pay higher interest rates. The total costs will also increase due to late fees and other penalties.
Home Equity Loans or Equity Line of Credit
You may have built substantial equity in your house over the last several years. The equity can be the basis of a home equity loan from a financial institution. Alternatively, you can get an equity line of credit if you have substantial home equity.
You’ll benefit from predictable repayment periods and interest rates by financing solar panels with a home equity loan. However, an equity line of credit generally has variable interest rates. As a result, your monthly payments will be shifting and fluctuating.
The primary benefit of home equity loans is that they have affordable interest rates. You can also claim the interest rate on home equity loans as tax benefits. This will lead to tax savings and less investment in your home solar panels.
When planning for home equity loans, there are many things that you should know. If your home has a mortgage, then you’ll be eligible for a lower home equity loan. In most cases, you can only borrow about 85 percent of the house’s value.
Another drawback is that getting a home equity loan can take weeks or even months to complete. Therefore, you should only select home equity loans if you think they’ll increase the home value. Most people only apply for home equity loans if they fail to get personal loans.
Simplify Getting Solar Power By Planning for Solar Panel Installation Cost
Solar panels are a great addition to your home because they reduce bills and increase energy efficiency. However, you must have enough capital to purchase, install, and maintain solar panels. As a result, you must know how you will finance the solar panel installation cost.
For more informative Finance, Technology, and Digital Marketing content, please check our other blogs.