SOLAR FINANCING OPTIONS
Financing residential solar projects has never been easier in Anaheim, California. As technology continues to advance, the cost of materials decreases thereby allowing more and more banks to offer loans to those interested in utilizing solar technology for their residential home. Unfortunately even with lower installation costs most homeowners still don't have enough money to cover the upfront investment of a solar panel system. Solar home financing in Anaheim, CA is still the best solution for many homeowners. The options are broken down below:
For those that want to lower their monthly bills and still reap the benefits of a solar panel system, solar leasing might be an ideal choice.
As with a Power Purchase Agreement (or PPA for short), the solar provider assumes all responsibility for the installation, maintenance, monitoring and repair of the solar system.
Another option for residential solar financing is making a group purchase. Numerous individuals all sign up for discounts to unlock even better rates. Homeowners average about 10%-20% savings through a group purchase.
The newest form of solar financing solutions, Peer-to-Peer lending matches borrowers with matches through third party platforms. These solar financing companies won't usually ask for property as collateral, but interest rates tend to be a bit higher than other solar financing rates.
Home Equity Loan
Avoiding third party ownership is always the best option for financing residential solar projects. With a home equity loan the borrower takes out a lien against the home and reduces its equity. The terms range anywhere from 7-20 years and interest rates are roughly 3.5%-7.5%. The may be tax deductible as well.
A Power Purchase Agreement (PPA) offers all of the same coverage as a Solar Lease but with one exception: there is a predetermined amount of money the homeowner is required to pay each month based on each anticipated kWh hour the solar system produces. This is very different from paying a monthly fee regardless of any sort of usage.
An Energy Efficient Mortgage (or EEM), is a mortgage the federal government offers to cover the financing of solar panels. The EEM basically provides credits for a home's energy efficiency in the mortgage. However, before the mortgage can be granted the home has to pass a professional energy audit and be rated energy efficient.
Some states offer a program known as PACE (Property Assessed Clean Energy). The way it works is the homeowner takes out loans from municipalities such as a city or state and pays the money back through higher taxes over a period of 15 or 20 years.
There isn't a credit check and the home won't lose any equity. If the home is ever sold during enrollment in the PACE program, the tax liability is transferred to the new homeowner.
Despite the fact that not every home is suitable for solar, shared solar makes it easy for everyone to have solar panels. This is one of the many excellent choices for commercial financing solar options because it can be community or owned by a third party.