Information About Loans And Leases For Solar PV System Installation
01 May 2015 in General
Growing population all around the globe has increased the demand for electricity and water. This has resulted in depletion of non-renewable energy, which is used to generate electricity. People are getting aware about the excessive usage of coal and fuel to generate electricity is also polluting the environment. Solar energy is a green renewable source, which has always been on the planet supplying heat for plants to prepare their food.
With this concept in mind, solar panels were produced to tap solar light and convert into usable electricity. Basically, the upfront cost of solar power system are huge but state government is providing rebates and tax credits to encourage usage of clean energy.
If you reside around Bay Area, you can be eligible for 30% tax credit for solar panel equipment and installation cost.
Loans Associated with Solar Energy Panel Installation
According to the tax rebates for solar 2016, banks will provide you with required amount as loan for the installation of solar energy panels. The loan type is available in both secured and unsecured options. After installation of such panels, you will not only save extra hundreds of dollars on monthly basis, but will also clear your loan, as early as possible. This can be possible because of the amount that you will save from not having to pay monthly utility bills as well as form the excess energy produced, which is fed in the utility-grid.
Leasing Solar Panels
Solar panels can be leased just like a house. Here you will sign an agreement with the local solar energy supplier in your area. They will invest in the solar PV system installation on your roof but in return you will need to pay an agreed amount, every month. Even though the procedure is just like regular electricity supply, the amount will be comparatively lesser.
Leasing is a best way of getting green energy supply installed in your home. When you do so, you will be paying certain amount on monthly basis. In case of regular electricity supply, there are chances that the overall cost might rise, either 6 months once or once every year. This is not the case with solar energy supply.
If you sign long term solar panel lease agreement with fixed monthly payment you can save significantly because price of electricity increases consistently. However, you will need to pay the same price till agreement expires. Besides you saved on upfront cost of installing the panel system.
Credit unions and banks provide unsecured loans but interest charges are huge, so beware! However, if you can clear the loan early then you can save substantially, since bank will reduce the rate of interest as your loan balance amount starts reducing.
Hence, decide about the amount that you can arrange and also about the amount that you will be obtaining in the form of loan. Calculate the require time duration to clear the amount and make necessary arrangements, accordingly.
San Francisco Bay area offers different loan types for different family types, such as nuclear family, joint family, etc. Know your requirement and apply for the right loan or lease type.