Are you one of the many homeowners in Las Vegas who are thinking about installing solar panels on your home? Here are 4 ways to pay for it.
Are you one of the many homeowners in Las Vegas who are thinking about installing solar panels on your home? If so, you’re likely wondering how you’ll pay for them.
Thankfully, there are a number of financing options available to you. In this blog, we’ll explore four of the most popular ways to finance solar panels in Las Vegas. Keep reading to learn more!
When shopping for solar panel funding, one of the first questions you will be asked is how much money you need.
To calculate the amount of power you will need for your property, and how many solar panels you’ll need to install in order to produce that amount of energy, you’ll want to start by looking at your most recent energy bill.
On your energy bill, look for your average annual energy use, or your kilowatt-hours (kWh). Divide this number by 12 to get your monthly consumption kWh. You will use this number to calculate the size of solar panels, and how many of that size, you will need to adequately supply power to your property.
For reference, the average homeowner in the U.S. uses about 30 kWh per day and needs 36 solar panels to power their home. Keep in mind, the number of panels needed varies from one property to the next based on panel capability and the size of the property.
While we recommend calculating your own cost of solar as a general guide to help you estimate costs and return on investment, you will want to contact your preferred solar provider and installer in order to accurately calculate the cost for your solar project and to help avoid any hidden costs, such as electrical upgrades that may be needed in older homes upgrading to solar.
Contact Bell Solar & Electrical Systems for your free quote today!
Paying with cash is the fastest way to start reaping the benefits of your solar system and making your money back. When you pay cash, you won’t have lingering payments or interest rates adding to the overall cost. Plus, the sooner you start saving on energy bills, the sooner you’ll recoup your out-of-pocket costs.
The downside to paying with cash is that you need a lot of cash on hand upfront. Most solar systems range from $20,000 to $30,000, which is a large sum of money to have available. If you plan to pay in cash, you may have to wait longer to get your system installed due to how long it may take to save up that sum of money.
Some solar loans are available with zero money down and you may find that your loan is cash flow positive from month one. This means that your savings on your energy bills are so significant that you are able to pay down your loan faster than expected in your loan terms. Plus, a solar loan qualifies you for the federal solar tax credit.
Loan term periods vary from one solar loan to the next, but some loans offer longer repayment periods of 10 to 20 years. This means you could consistently pay small payments so it doesn’t feel like you’re putting a lot of money forward. However, many do suggest getting a smaller loan and making larger payments to finish the process sooner.
Of course, your credit score will play a factor in qualifying for a solar loan. Loan agencies typically look for a credit score of 600-700 for solar loans. If you are in this range you have a good chance of receiving a loan.
Hot Tip: Be on the lookout for low interest rates and perks from your loan provider, such as easy online access to the loan agreement, discounts when you enroll in auto-pay programs, and unemployment protection.
Another financing route to consider is government loans. The Federal Housing Association (FHA) offers two loans large enough to finance solar installation. The two options are the PowerSaver Second Mortgage and the PowerSaver Energy Rehab 203(k) loan.
The Second Mortgage loan allows homeowners to take out a second mortgage of up to $25,000 to install solar panels. To qualify for this loan, homeowners cannot have an existing home equity loan, second lien, or second mortgage. Participants have up to 20 years to pay off this loan.
The 203(k) loan allows anyone who is buying or refinancing a home to include the price of new upgrades in their new loan. These participants will have the entire length of their new home loan to pay this off.
For both programs, homeowners must have a credit score of 660 or higher and a debt-to-income ratio of 45%. The biggest perk of these programs is that their interest rates tend to remain in line with personal loan rates. The biggest drawback is that the repayment term is twice as long and the FHA can place a spending threshold on your home.
You might also consider a home equity loan to finance your solar panel installation. Banks will lend up to 85% of the equity in your house for this project. If you have been keeping up with your home payments, this loan will not set back your financing plan and you have a better chance at getting a good interest rate. However, this does mean the bank retains the ability to repossess your home if you become delinquent in payments.
The federal solar tax credit allows you to deduce 30% of the cost of solar installation from your federal taxes. There is no limit to how this can be used for both residential and commercial systems. If you have chosen to lease your solar panels, then you cannot benefit from this tax credit.
Being a homeowner in Las Vegas means that solar power is a readily available system for reducing energy costs and improving overall efficiency. Evaluate how much this process could cost and begin your budgeting plan. Whether you pay cash or take out a loan, there are multiple options that make solar more accessible to you than you may have initially thought.
Homeowners all over the valley are boasting about their experiences with Bell Solar & Electrical Systems. Bell Solar continues to provide excellent customer service throughout every step of the process. With some of the best solar installation prices and customer service in the valley, let us show you why Bell Solar & Electrical Systems is the right solar partner for you. Request your free quote today!
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