Whenever a solar electrical system purchase is being considered, the number one question that sometimes arises is “How will it be paid for?”
While there has been a lot of publicity for sophisticated leasing models over the last few years there has not been much talk over solar ownership.
We at Southface Solar Electric thought that perhaps it was time to shed a little light on ways many of our clients have enjoyed all the benefits solar ownership has to offer. We believe that many people would benefit from solar ownership more than they would benefit from leasing solar. This is do in part to keeping the tax credits in your control, and also increasing your homes equity significantly.
There’s two chief ways in which people go about getting the financial resources they need to own solar. Including:
1. Equity Refinance
This is the best ways to absorb the initial costs of solar. The idea here is that you will reduce your homes operating cost 80%-90% and also reducing your mortgage payment or only slightly increasing it.
This has to do with what your current interest rate is. Also, unlike other home improvements projects you will be getting an instant home equity increase.
Due to these reasons this option has been extremely successful at eliminating the up-front costs associated with solar ownership in the past.
2. Home Improvement Loan (HELOC)
This is another great way to absorb the initial cost of solar. The ease of this is that it almost mirrors most traditional lending option currently be utilized. The really neat thing about this type of lending is the fact that the interest you pay throughout the year is 100% tax deductible. You should note that this style of lending is limited to $25,000.
Another interesting benefit that is associated here is that you have the ability to re-amortize the loan in the first 24 months and that there are no early pay-off penalties. This option is extremely popular in eliminating or reducing that up-front cost sometimes associated with solar ownership.
Remember there is no one size fits all solution. These are the top 2 ways people get into a solar investment while eliminating the initial investment amount.
Solar ownership is not a mystery. We at Southface Solar Electric pride ourselves on being the experts in solar ownership. We can deliver a consistently high rate of return year after year for anyone wanting to make the ownership investment.
To get your free quote click here: Contact Southface