What Is a Solar Loan: Here’s Everything You Need to Know

Do you want to decrease your carbon footprint while also lowering your monthly power bill? The answer is solar panels. Installing them can benefit you in a number of ways but they’re not cheap.

The upfront cost for panels can reach a thousand dollars or more. The good news is that you do have plenty of financing options. You can head to your bank and take out a personal loan or look into getting a solar loan.

Check out this guide to learn more about what solar loans are and determine if it’s the right financing option for your panels.

What Are Solar Loans?

If you get a solar loan, you’ll be able to go ahead and purchase your panels and pay on them each month. Since you’ll be buying your solar panels, you can take advantage of all the awesome tax incentives that come with having them. 

As far as affording the monthly payments goes, it won’t be that much more expensive than your regular power bill. In fact, it may even be cheaper.  

Does it Make Sense for Me to Get a Solar Loan?

Of course, getting a solar loan isn’t all sunshine and daisies. Depending on your situation, going with a different financing option might be better. 

Say that a large storm blows through your area. The wind knocks something onto your roof and cracks one of the panels. If you went with a solar loan, you’ll have to spend money out of your own pocket to repair it. 

If you have the money for that, great. If you don’t, you’re stuck with a broken tile.

How Do You Get a Solar Loan?

If paying for repairs isn’t a deal-breaker for you, it’s time to find out how to get a solar loan. The first step is filling out a Loanpal application. The higher your credit score, the better the deal you’ll get as far as interest rates go. 

Once you’re approved, the lender will talk to you about your two loan options. The first one is called PowerSave Second Mortgage. It allows you to take out a second mortgage to pay for your solar panels.

You won’t qualify if you already have an active mortgage payment going on. If you have a payment going on, you’ll have to go with the second option, PowerSaver Energy Rehab. To qualify for either loan, you have to have a credit score of at least 660. 

Are Solar Panel Loans Right for You?  

Getting solar panels is a great way to shave some money off your power bill and give back to the environment. The only problem is that financing them can be painful for the wallet. That’s why you should look into getting a solar loan. 

Going this route will allow you to pay outright for your panels and start reaping the rewards right away. It’s a no brainer unless you don’t like the idea of taking out a loan. In which case, check out the finance section of our blog for more options.  

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