
Financing Options for Solar Installation: What You Need to Know
Oct 21, 2024
3 min read
1
2
0
October 21st, 2024

Studies have shown that solar panels can increase a home's resale value by an average of $15,000
Making the switch to solar power is an exciting and impactful decision for homeowners, but it often comes with one key question: how do I pay for the installation? Fortunately, there are a variety of financing options available to make solar energy more accessible and affordable. In this comprehensive guide, we'll explore the different ways you can fund your solar panel installation, so you can choose the best path forward for your home and budget.
Upfront Payment
The most straightforward solar financing option is to pay for the installation upfront. This approach allows you to take full ownership of the system and reap all the long-term benefits, such as reduced electricity bills and increased property value. For homeowners with the financial means, an upfront payment can be the simplest and most cost-effective way to go solar. However, for those without significant cash reserves, there are other viable financing alternatives to consider.
Solar Loans
One of the most popular solar financing options is a solar loan. These specialized loans are designed to cover the initial cost of the installation, allowing you to pay it off over time, typically 10-20 years. Solar loans often come with competitive interest rates and may even be eligible for federal tax credits or other incentives, making them a highly accessible choice for many homeowners.
When exploring solar loan options, be sure to compare terms from multiple lenders, such as interest rates, loan lengths, and any applicable fees. Also, inquire about any special programs or discounts that may be available in your local area or through your solar installer.

The average cost of residential solar systems has declined by more than 60% since 2010
Solar Leases and Power Purchase Agreements (PPAs)
If you prefer a more hands-off approach to solar, you may want to consider a solar lease or power purchase agreement (PPA). In these scenarios, a solar company owns and maintains the system on your roof, and you simply pay a monthly fee to use the generated electricity.
Solar leases and PPAs often require little to no upfront cost, making them a appealing option for homeowners with limited access to capital. However, it's important to carefully review the contract terms, as you won't own the system and may not be eligible for certain tax credits or incentives.
Residential Solar Tax Credits and Incentives
Regardless of the financing path you choose, be sure to take advantage of any available solar tax credits and incentives. The federal government offers a solar investment tax credit (ITC) that can significantly offset the cost of your installation. Many states and local municipalities also provide additional rebates, performance payments, and other incentives to encourage solar adoption.
Your solar installer can help you navigate the various tax credits and incentives, ensuring you maximize the financial benefits of your solar investment.

Choosing the Right Financing Option
When it comes to financing your solar panel installation, there's no one-size-fits-all solution. The best approach will depend on your unique financial situation, long-term goals, and personal preferences. Take the time to research and compare the different options, evaluating factors like upfront costs, monthly payments, and long-term savings.
Remember, the team at Bracket is here to guide you through the entire solar installation process, including exploring the most suitable financing options for your home. Contact us today to learn more and take the first step towards a brighter, more sustainable future.