How Do Solar Loans Work? A Basic Guide

Did you know that solar power has grown on average 49% each year for the last decade?

Solar power is the green, renewable energy source that is replacing traditional electricity in many American houses. In addition to this, the price of solar power has dropped considerably over the last decade.

There is, however, a considerable financial outlay when purchasing solar panels and equipment. Did you know that solar loans can help you meet that cost? Why not read on to find out more about solar loans?

Home Equity Loan

You are probably familiar with home equity loans where people borrow against the equity of their home in order to fund repairs and improvements. The work performed raises the value of the house and so the loan literally provides its own equity.

Solar energy is now classed by many financial organizations as a home improvement meaning that they will offer you credit to get your installation.

A large number of institutions will be willing to fund your solar installation. However, as with all loans that use your home as collateral, you should remember that if you cannot meet the repayments, you risk losing your home.

Personal Loans

Personal loans are the cash that you can use for almost any purpose, including a solar energy installation in your home. Most people get personal loans from their bank, credit union, or even a lending company such as Loanpal.

Some companies will offer loans specifically aimed at those who want solar power. They have a set rate and fixed repayments in installations over a pre-determined period of time.

Secured Solar Loans

Some solar energy companies will allow you to apply for credit through the company itself. The installation is the security provided as collateral for the loan.

This is a streamlined and simple workflow for the loan agency. In essence, the loan is counted as secured. If you do not meet the repayments, they will simply take back the solar equipment.

While this sounds like the simplest option, remember that the solar energy company may not offer the most competitive rates and terms. Ensure that you read the small print before signing up.

City Loans

Solar power is green and renewable. This makes it very popular with cities and states that are looking to reduce their overall carbon footprint. Some even offer financial incentives to homeowners who install solar power.

Why not research what your local or state authorities will offer you if you choose to install solar power?

Everything You Needed to Know About Solar Loans and More

Solar power is not only good for the environment, but it is also good for your pocket. Solar power can save you a large amount of money over the long term. While there is an initial outlay of cash to invest in the solar equipment, solar loans can provide the finance for this.

If you are interested in learning more about solar power, finance, and other lifestyle topics, why not follow our blog? We write articles that we know will benefit you and your business.

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