Updated: Apr 28
Embracing solar energy is a big step--not just for you, but for the environment. After deciding to go solar, the next step is figuring out how to pay for your solar panels Fortunately, there are several options available whether you have the cash in hand or not.
If you are on a tight budget, solar energy is still within reach. You just have to find the right financing option for you. Read on for more information on the different payment options around.
Payment Options for Solar Panels
The average cost of installing solar energy in the United States is between $10,750 and $32,250. The price varies according to the size of the system and a few other factors. Here are some payment options that you can use to finance the purchase of your system.
Paying in Cash
Payment through cash is fairly straightforward. You've probably transacted in cash in other large-purchase scenarios. Getting a solar panel through cash works the same way. You can acquire the ownership of the solar panel by exchanging cash for it. Payment through cash is hassle-free and fast. Most systems will recoup their initial cost in about six to seven years if you buy in cash thanks to the savings you’ll be enjoying on electricity bills and not having to pay interest on a loan.
Home Equity Loan
The good thing about owning your own home is that you accumulate equity overtime. Equity is the difference between the value of your home and its remaining mortgage balance (i.e., what you owe on the home). You can use your home equity as collateral to get a loan, which you can use to install solar panels. The upside of home equity loans is that their interest is very low. Repayment should not be a problem if you have financial discipline.
Secured and Unsecured Loans
Several solar loan choices are available for installing a solar panel system. You can categorize these loans into two groups: secured and unsecured loans.
With a secured loan, lenders will require that you provide an asset as security. In case you cannot pay the loan back, they’ll use the asset to recoup their investment. Secured loans have lower interest rates and flexible repayment periods compared to unsecured loans. On the other hand, you won't need collateral to access unsecured loans.
Unsecured loans sound appealing, but the interest rates can be very high. You’ll also notice that the repayment period may also be shorter. Beware taking an unsecured loan and failing to pay it back as the consequences are grave, including impacting your credit score and financial health.
Leasing is similar to renting solar panels from a vendor. With a lease agreement, you will pay a specific monthly sum for using the solar panels. Leasing sounds attractive on paper because the initial cost is low and the monthly payments are affordable. However, leasing makes you miss out on local incentives and federal tax benefits. Leases can also contain hidden clauses that can increase your costs in the long run.
Your Solar Energy System with Mynt Solar
Invest in a simple solution to your energy challenges. Mynt Solar offers solar panels with excellent technology at affordable rates. If cash is not within your reach, you can opt for financing from Mynt. Best of all, Mynt's flexible finance option won’t require any down payment from you, and they are always transparent about costs. Contact Mynt Solar today for more information.