The electrical bill is a significant factor in the long-term affordability of a home in the United States. Each month, every homeowner must contribute at least $100 to keep up with the cost of lighting, heating, Internet, and anything else in a home requiring electrical power. Solar panels can help, but they typically have a hefty upfront cost. Below are several ways to make solar energy financing more affordable.
Is Solar Energy Worth It?
The average American pays $115.49 for electricity per month, according to the 2019 report from the U.S. Energy Information Administration. Depending on how much sunlight your home gets per year, you could save a significant amount over time. Solar energy is worth it. However, solar panels themselves typically cost between $17,000 and $32,000, a significant investment that, although will pay for itself, does require the upfront cost. Your state may also have incentives and programs that help pay for the panels.
Solar Energy Financing Options
Personal loans are the most common type of solar energy financing. Secured and unsecured personal loans are the most popular way of financing significant home improvement projects, such as solar panels. All in all, personal loans can give you the upfront costs quickly and allow you to pay them back in monthly installments.
Home Equity Loans
A home equity loan puts your home down as equity in case you cannot repay the loan. If you already know the exact cost of the solar panels, you can apply for a home equity loan. A similar format is a HELOC, a home equity line of credit, which acts as a credit card specifically for your project.
The FHA loan comes from the Federal Housing Administration and has helped many people finance home improvements and first homes since the 1930s. This type of loan is easy to qualify for; the only drawbacks are potentially higher interest rates and fees.
Solar Energy Financing Broker Services
Pure Finance Group helps connect homeowners with lenders. We specialize in solar energy financing and home improvement financing, especially when it comes to personal loans. Contact us for more information!
Pure Finance Group Is Here to Help!
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