Once you decide to go solar, a few more decisions are necessary before your green dream becomes a reality. There are a few different options when it comes to paying for your solar system, and here at SunHarvest Solar we have your best interest at heart. That’s why we strongly recommend and offer options for financing or purchasing your panels, rather than leasing them.
Financing Your Solar System
SunHarvest Solar offers a variety of financing packages. The terms and interest rates vary, but include as low as 2.99% for 240 months with zero down and no payments or interest for 18 months. This option allows you to acquire the federal and state tax credits, reduce or eliminate your utility bill, and save money — all before any payment is owed to pay for the solar system. Additional financing packages offer zero-down loans, low interest rates, and incentives for acquiring tax credits. All applications are done online, and approval is typically within minutes.
The return on investment with financing varies by your loan product, terms, and credit score, but is usually within the range of 8 to 10 years. If you choose the financing path, your solar system will be under a manufacturer’s warranty for up to 25 years, so you will see little to no utility bills or loan payments for 15 to 17 years. This is often one of the biggest reasons many of our customers choose this option when they are ready to go solar.
Purchasing Your Solar System
Purchasing your solar energy system outright is by far the best return on investment, averaging between 5 to 7 years. This option is favorable (and the return is quick) because you don’t have to pay for access to capital, financing fees, or any other costs associated with the financing path. Additionally, investing in a solar battery can help maximize the amount of power you can use from your solar panels, which translates into even more savings.
In addition to the savings you’ll see while living with your solar energy system, you will see even more return if and when you sell your home. Purchasing solar panels will increase the value of your home by at least the cost of the system. When the time to sell comes, we strongly encourage you to utilize a realtor who specializes in green homes, and insist on using an appraiser who is certified in the green addendum. There are many realtors and appraisers out there who are not familiar with green homes and cannot articulate the value of energy production, offset, or carbon reduction. Therefore, using a professional familiar with evaluating solar on homes is highly recommended!
Leasing Your Solar System (and why we don’t recommend it)
While leasing your solar energy system may seem enticing on the surface, this model is discouraged and not an option SunHarvest Solar offers. There are no tax benefits to leasing a solar system, as the benefits get signed over to the leasing company. This model does not add any equity to your home, and can in fact become a liability when trying to sell your property, as the prospective home buyer must want to qualify to take over the lease payments in addition to buying the home. There are various additional reasons why we do not recommend leasing a solar energy system — the advantages of purchasing and owning your solar energy system are vast compared with this model. The tax and equity benefits alone substantially outweigh the potential liability of leasing a solar system, and the implications of removing, defaulting, or transferring a leased solar system.
With so many options for going solar, it’s easy to make the switch here in our sunny state. SunHarvest Solar can help you with the transition by answering any questions, providing a free quote, and ensuring your home or business gets the best quality and longest lasting source of renewable energy around.