Solar panels can be a wise investment, saving you serious money and increasing your property value in the process.
But they don’t come cheap. In fact, according to solar marketplace Energy Sage, the typical solar panel system runs just over $13,000. That’s factoring in tax credits, too.
Though some people might have this kind of cash on hand (or in savings), the bulk of homeowners do not. That’s where solar panel loans can come in.
What are solar panel loans?
These are loans designed specifically for financing the purchase of solar panels and solar panel installation. They’re often offered in-house by companies that sell solar panels or install systems, but they may also come from a third-party financing firm. Sometimes, you may be able to get a solar loan from your state, city, or local utility company.
Solar panel loans work like any type of loan product. You purchase your solar panel system, apply for the loan, and then pay off your balance in monthly installments until you own the system in full.
The only exception here is the R-PACE loan. These loans are offered through the government’s Residential Property Assessed Clean Energy program, and they allow you to pay off your solar panel purchase as part of your annual property tax bill. These are only available in California, Florida, and Missouri.