Securing solar energy financing is more straightforward and economical than ever. Here are some options for you.
You already know that going solar at your home or business is a savvy move. From savings on energy bills to increasing your property value to environmental benefits, getting equipped to take advantage of solar just makes sense.
So why haven’t you made the move yet? For many home and business owners, it’s concern about the start-up costs that stops them from taking the solar plunge. Clients regularly ask us: how can I get financing for solar?
The good news is, securing solar energy financing is more straightforward and economical than ever, and installation providers can help you secure solar system financing quickly and painlessly. In fact, solar financing options for every budget and project size are now on the market. Let’s take a closer look at each of your options.
The average cost to go solar in Nevada depends on whether you’re looking to outfit a home or a business, the size of your project, and other individual factors. That said, the reality for any solar buyer’s situation is that solar panels can eventually pay for themselves.
Read that again: Solar panels can eventually pay for themselves.
How is that possible? It’s a combination of tax credits, energy savings and other benefits and incentives. For Nevada homeowners, the average cost of a 5-kW solar system is approximately $11,500. After factoring in the federal solar credit, that cost drops to $8,100. Add in energy cost savings and other savings, and you could go solar at an eventual net cost of $0 to you.
If you’re a business owner in Nevada and you’d like to outfit your commercial property with solar, the average cost is going to range from $40,000 to $500,000. But when you factor in the available tax credits, the significant reduction that commercial properties see in electric bills, and other incentives, those solar panels will almost certainly pay for themselves.
And of course, when you’re thinking about the cost of going solar in Nevada, you’ll also want to factor financing for solar into your calculation. So, let’s look now at how, exactly, to get financing for solar. The option you choose will depend on your personal or business preferences, finances, and savings goals.
Financing solar looks different for everyone, depending on the financing option you choose and the size of your project. In general, there are three financing options that we can offer to clients to help them realize their home’s or commercial property’s solar energy goals:
The most straightforward financing option is simply by paying for the entire system upfront in cash. This is the financing for solar that often pays the highest dividends in terms of your return on investment. Why? Because if your solar system is designed to cover 100% of your building’s energy needs, you’ve just paid for decades of energy use in one step, insulating yourself from eventual energy price hikes. You’ll also still receive any and all tax credits and other incentives that come with going solar.
This isn’t an option for everyone, as it requires a larger outlay of capital right up front. But if you have the cash on hand, we recommend using it to beat rising energy costs, hedge against inflation, and start seeing the financial benefits of solar on day one.
Next up is the option to get a solar loan. This is a great choice if you don’t have much (or any) capital on hand for a down payment, but want to fully own your system from the minute it’s installed. When taking out a solar loan, you can opt to put no money down or to put some money down, depending on your financial situation and how much you’re looking to finance. And don’t forget, you’ll start seeing that lower monthly energy bill right away – a financial boon for homes and businesses alike!
Loan rates and terms vary, but your solar provider can walk you through the entire process, making it quick and easy for you.
Alternatively, you could opt for a lease or power purchase agreement (PPA) to finance your solar transition. With a lease or PPA, a third party owner installs solar panels on your property. Then, they sell you the electricity that the solar panels produce, at a predetermined rate. In general, this allows you to lock in the same electricity rate for 25 years. What’s more, that rate tends to be 10% to 30% lower than your current electricity rate.
Another feature of the lease or PPA option that many solar seekers appreciate is that your third party owner will be responsible for all maintenance that the system might need. Customers often prefer to avoid the need to monitor and maintain their system, and if that sounds like you, then the lease/PPA financing for solar option might be your best bet.
And there’s more good news: the federal government is still offering tax incentives for homes and businesses that go solar. In 2022, the Solar Investment Tax Credit (ITC) provides a 26% tax credit for installed systems. In 2023, that tax credit will lower slightly, to 22%, which nevertheless still represents a significant tax savings for homeowners and business owners who switch to solar. Unless Congress renews it, the generous ITC will expire in 2024, so the time to get in is now!
You can combine your federal tax credit with any of the state or local government incentives that might also be available to you, depending on where you live. Be sure to research all the incentives available to you, to ensure you get the best price possible for your solar panels.
The bottom line is, switching to solar is much less expensive than most consumers think. With financing for solar, federal, state, and local tax incentives, and immediate electric bill savings, your solar panels could end up paying for themselves.
At Bell Solar, we’re committed to helping you take advantage of all the solar financial incentives available to you. We’ll make financing solar quick, easy, and affordable, whether you’re looking to install a home system or a system for your commercial property. Reach out for a free quote from our expert team today, and start reaping the financial and environmental benefits of going solar!
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