Are you interested in taking advantage of the many benefits associated with installing solar panels on your Rockland or Orange County home? Reduced carbon footprint and lower energy bills await, but as with any home improvement project, you need a way to fund the investment. Will you purchase, lease or take out a loan for solar panels? Here are the pros and cons of each financing method that solar leasing companies in NY should be telling you.
Buying Solar Panels
This straightforward option comes to mind first when considering switching to solar panels. It’s the right option for many people, but it might not be for you. Consider the pros and cons.
Pros
- The solar system and the energy it produces are entirely yours from day one.
- Purchasing is the quickest way to achieve the greatest savings possible from going solar.
- You have full access to tax credits and incentives, which bring the initial cost down and speed up the payback period.
Cons
- The upfront cost is prohibitive for many New York residents.
- You are responsible for figuring out your eligibility for government tax credits and incentives. You’ll want to keep a spreadsheet to detail your expenses and payback.
- You are responsible for maintaining your own equipment or hiring someone to do so.
How it Works
If you have enough savings to cover the cost, buying solar panels is as simple as signing a contract and writing a check. The solar installation company takes care of the rest, from designing the system to acquiring permits to performing the installation, a process that takes as little as three months.
Taking Out a Loan for Solar Panels
If you don’t think you can afford to purchase solar panels outright, but you’re still interested in the financial and environmental benefits of solar energy, taking out a loan is one $0 down option to consider.
Pros
- You own your solar energy system.
- You get started with $0 down and save on your energy bill from day one.
- Low, fixed monthly loan payments replace unpredictable energy costs. These payments remain constant for the duration of the loan.
- It’s easy to qualify for a solar loan, even if your credit score isn’t perfect and you don’t have much equity in your home.
- You can apply for the same tax credits and incentives as people who buy their solar panels outright.
Cons
- By the time you pay the solar panels off, interest will have increased their overall cost.
- You are responsible for maintaining and monitoring your system.
- System performance is not guaranteed, leaving you responsible to foot any repair bills.
How it Works
You take out a loan to cover as much of the installation as you want, up to the entire cost. Federal and state tax credits are subtracted from the total loan amount. The solar panels are installed with $0 down and you start saving right away. Loans range from 5 to 20 years and can be repaid at any time without prepayment penalties.
Leasing Solar Panels
Solar leasing companies in NY specialize in this $0 down financing option. It’s a great way to break into the solar arena and lower your home’s carbon footprint. Leasing is similar to getting a loan, but you get some extra assurances that may make it a better option for you.
Pros
- You get started with $0 down and save on your energy bill from day one.
- Low monthly lease payments replace unpredictable energy costs.
- System performance is guaranteed for 25 years, an assurance that gives you peace of mind when you choose this option.
- If you decide to move, you can transfer the lease to the new homeowners or even take the panels with you, depending on where you move to.
- Maintenance and monitoring are built into the lease.
- You can lease more panels from solar leasing companies in NY to expand your solar array at a discounted price.
Cons
- By the time you pay the solar panels off, interest will have increased their overall cost.
- You relinquish cash rebates and tax credits to the solar leasing company.
- Lease payment rates go up each year.
- You don’t own your solar panels and failure to keep up with payments could result in having them removed.
How it Works
After signing a lease agreement, solar panels are installed with $0 down. You pay a monthly rate to begin paying off the panels while simultaneously enjoying tremendous energy savings. At the end of the typically 20-year lease agreement period, you can renew the lease, purchase the panels for their residual value or ask the solar leasing company to remove the system.
Now that you know what solar leasing companies in NY should be telling you about your financing options, you can enter the process as a more knowledgeable customer.
