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How Does Solar Panel Financing Work?

Do you own your home? Are you looking for ways to lower your electric bill (or eliminate it entirely)? Do you want to add value to your home?

You’ve probably thought about solar panels. They’re a great investment, can reduce electric costs by up to 70%, require minimal maintenance and can pay for themselves. But too many homeowners in California think they can’t afford solar panels.

Nothing could be further from the truth.

Today, we’ll talk about how solar panel financing works and clear up a few myths about buying solar panels.

Buying or Leasing Solar Panels

solar panels on the roof of a commercial building

When it comes to solar panels, the biggest mistake you can make is leasing solar panels. If someone tries to sell you solar panels and then says leasing is your best choice, they’re not being honest with you!

You Miss Out on Tax Credits!

When you lease solar panels, you don’t get to take advantage of the valuable state and federal tax credits- the owners of the solar panels do! In California alone, there are more than 100 credits and rebates available to homeowners who own the solar panels installed on their homes. There’s no reason not to take advantage of them!

This can cost you thousands of dollars!

You Might Not Be Able to Sell Your Home Easily!

Do you want someone telling you what you can and can’t do with the home you own? Of course not! But when you lease solar panels, the owner of the solar panels will place a lien on your home. They’ll become your “partner” whether you want them to be or not. When you’re ready to sell your home, this can lead to complications that might make it difficult to sell your home.

Leasing Costs More

Lease Buy
You Own The Panels? No Yes
You Receive Federal & State Tax Credits? No Yes
Adds Value To Your Home? No Yes
Guaranteed Fixed Monthly Payments? No Yes
Bad Credit? No Yes
Electric Costs? $.18/kwh $.06/kwh

Over the long run, leasing solar panels costs more than buying them. Solar panel leases often fluctuate over time, leading to much larger payments a few years into your lease agreement. Financing solar panels allows you to lock in low monthly payments that don’t change over time!

The Bottom Line: Buy Your Solar Panels

“I Can’t Afford to Buy Solar Panels!”

Many homeowners believe that they have to pay the entire cost of their solar panel system out-of-pocket. While this is an option for some, our flexible financing options can help!

When you work with Inter Faith Electric and Solar to finance your solar panels, you can pay as little as $0 out-of-pocket.

“The Interest Rate Will Be Too High”

Another common worry from homeowners in Southern California is that when financing the purchase of their solar panels, they’ll be paying too much in interest. This just isn’t true. Our interests rates start at just 2.99% (a bit less than the current rate of inflation) and don’t increase over time. Your monthly payments are locked in from the start of your financing agreement and never change. What you pay today is what you’ll pay for the entire time you’re financing your solar panels.

“I’ve Got Bad Credit. I’ll Never Qualify For Financing.”

There’s no such thing as bad credit. If you want to save money on your electric bill, add value to your home, and take advantage of valuable tax credits, we’ll help you find a way to purchase your solar panels. Our flexible financing program is available to help homeowners with good or bad credit.

“Will I Really Add that Much Value to My Home?”

Add Value to Your home

To put it simply: YES! Recent estimates show that a solar panel system increases a home’s value by nearly $20,000. And this doesn’t even include the money you save on your electric bill every month. Solar panels are not only a great investment, they can literally pay for themselves.

Compare the $20,000 in value solar panels add with:

  • Swimming PoolMost estimates show a swimming pool adds very little value to your home but can cost thousands a year to maintain and insure, not to mention the sky-high installation costs.
  • Kitchen Remodeling – A major kitchen remodel can add around $40,000 to your home’s value but can easily cost over $50,000 to complete.
  • Xeriscaping – Xeriscaping is actually a great way to increase your home’s value and decrease maintenance costs. It’s worth considering if you’re adding solar panels to your home and are looking for another way to appeal to eco-conscious home buyers.

How Do I Get Started?

If you’re interested in solar panels for your home, contact us today. We can come out to your home, talk to you about the best solar panel system for your home, provide a free no-obligation quote and tell you more about our solar panel financing program.

We can have your solar panels up and running in about 3 weeks!

So what are you waiting for? Call Inter Faith Electric and Solar Installation today at (661) 245-3224 and ask for Marcus!

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