Installing solar panels on your home can generate significant long-term savings on your electricity bill. But how does solar financing work?
However, the upfront cost of purchasing a solar panel system can be daunting. This is where solar financing comes in – it allows you to go solar with no money down while owning the system. With solar financing, you can start harnessing the power of the sun to immediately lower your energy costs. Here is how solar financing works.
First, you schedule a Home Efficiency Evaluation with Zone 5. Zone 5’s energy specialists will evaluate your home’s energy needs by considering factors such as the size, angle, and shading of your roof, as well as sun exposure on your home using satellite data. That data is compared to your annual kilowatt usage on your energy bill.
If your home qualifies, our engineers will design a solar energy system tailored to meet your household’s annual electricity demands. Your specialist will determine the exact number of solar panels needed, along with any other benefits that will lower your expenses, including water heaters, AC units, and spray foam insulation.
Next, we move on to system installation.
In the past, when obtaining a solar loan, a down payment of several thousand dollars was required to get started. However, in Zone 5, our financing options do not require any down payments if you are approved for the full amount.
When a home qualifies, the financing covers the entire balance, eliminating the need to purchase the system upfront. Typically, the financing is secured against the solar panels rather than the home.
Your monthly solar loan payments are at a fixed rate
Your fixed rate is similar to what you’re currently paying the utility company for electricity.
Zone 5 helps you lower and fix your bill so that you spend less money overall.
This is how you start saving money: as the electric company increases their rates, your financing is locked in.
Solar loan payments remain consistent over the loan term and are not affected by utility rate hikes.
You own the panels yourself, not the financing company. Once the loan is fully paid off, you owe no more solar payments. This unlocks even more savings on your electricity costs over the remaining life of the system.
Instead of buying electricity from the energy company, you repay your solar loan over time through fixed monthly payments.
Loan terms typically last 20-25 years. Your monthly payments are determined by the total project cost spread out over the term.
Homeowners who purchase solar become eligible for the federal solar tax credit. The tax credit is for 26% of the total system cost.
The tax credit is intended to help pay off the principal of the system. If used as recommended, your solar bill is locked into a cheaper rate.
Your Energy Specialist will explain this in detail.
They don’t give tax advice, but they will explain how your tax credit can help your Home Efficiency bill to save you a ton of money from the energy company.
Long story short: you can either continue paying the electric company a rate that increases for the rest of your life, or you can lock in your rate, escape the price hikes, and pay thousands and thousands less over the years.
People go solar because it simply doesn’t continue to get more expensive.
So while the neighbors pay an extra 60k-80k over the next 20 years, you can escape the monopoly of the electric company today by getting your free Home Efficiency Evaluation.
You now know how solar financing works, but find out it will work you and how massive your savings will be!
