All You Need to Know About Solar Financing from Solar Energy Companies

Installing a solar panel system in the house can be really expensive to get, and it is a luxury that not everyone can afford. Though it is an investment and the benefits that they have to offer are quite good for making that investment, then again; not everyone has the money lying around to make that investment. Therefore, to make it easier for everyone, some solar energy companies provide solar financing to those who are in need. As the name suggests; it is the process in which the solar company you choose to get the solar panels installed provides you with a loan. There are usually three popular financing choices, leases, PPA’s, and loans. 

Solar Finance Lender Might be a Bank, A Utility, or A Solar Energy Company

The amount which you will need to lend entirely depends upon the size of the solar photovoltaic installation. Typically, the ones that people get installed in their houses are between 2 and, 20 kilowatts depending upon the variety of factors that includes the available roof space; site conditions such as the roof aspect, shading, and the electricity usage of the home, and the available financing. However, the price varies. However, the usual residential solar PV system costs between $15,000 to $35,000, roughly the same amount as a new car. This is where the solar financing comes in to take some burden off of you. 

Solar Financing has Fueled the Growth of Solar System Installers

As we discussed above not everyone can afford to get a solar system installed in their home. It was the solar financing that fueled the growth of the solar market in the United States. There are two broad categories based on the ownership of the solar PV system. One is third-party ownership, and the second one is ownership via a loan. Some companies like Solar SME will arrange for the installation; of the solar system while at the same time will provide financing for that system.

Whereas on the other hand, the installer is typically a different entity than the financial lender. Installers are solar panel installers, whereas the lenders are banks, private-public partnerships, organizations, or other entities. Third-party residential solar lenders usually allow homeowners to avoid high, upfront system costs and spread out their payments over time. That often puts all of the responsibility of the system maintenance and the operation on the third-party owner. 

Loan Financing is Also Becoming Popular

That has become a popular way for homeowners to pay for the loan. It is becoming exceedingly popular because it allows the homeowner to spread the cost of the system over time. while being the owner of the system. Unlike third-party solar ownership; it allows the customer to own a solar system outright and benefit directly from the state and the federal incentives. Though, the customer can also incur the liabilities associated with ownership.