Everything You Need To Know About Financing Solar Energy
Clean energy, especially solar energy is becoming more affordable worldwide. This is no secret, but did you know just how drastically prices are decreasing? A study by GTM Research, conducted by Ben Gallagher, a renowned solar analyst predicts that the cost of solar power construction will reduce by around 4.4 percent every year. this means that by 2022, prices of solar energy projects will drop by a staggering 27 percent.
The reducing price of solar energy has made it a more accessible option for people from various countries and different backgrounds. In fact, the United States alone has more than 1 million solar installations. Such impressive statistics do not come as a surprise since solar energy has very little upfront cost compared to how much you can save in the long run. Besides, with utility companies increasing their prices, many people have chosen to go solar.
So, for residents of Florida, known as “the sunshine state”, this is extremely good news. The state’s weather makes it ideal for solar installation, making it one of the leading states when it comes to home solar power.
Top methods of solar financing
According to EnergySage, the current price for solar panels in Florida is around $8,505 to $11,305, much below the national average of $12,500. This alone makes solar power much more attractive and affordable for Florida residents.
However, if you wish to go solar, but do not have enough cash to pay upfront costs, here are some of the most common financing options available to you.
- Power Purchase Agreement/Solar Lease
Power Purchase Agreement (PPA) and Solar Lease are methods of third-party solar ownership, where the solar company owns, maintains and repairs the solar panels. In return, homeowners pay a monthly fee. They are more or less similar, except for a key difference. In PPA, you, as a homeowner, pay depending on the amount of power produced. However, in Solar leasing, you pay a fixed monthly fee.
- Energy Efficient Mortgage
Energy efficient mortgages, also known as EEM are available from the federal government for homeowners as a solar energy financing option. The energy efficiency of your home will be credited by the EEM credits in your mortgage itself. However, professional auditing for energy will be conducted in your home before EEM can be approved.
- Home Equity Loan
Another option is home equity loan, where the collateral is your property. You reduce your home equity by creating a lien against it. Usually, rates of interest are from 3.5 percent to 7.5 percent, terms are generally range from 7 to 20 years, and interest may be eligible for tax deduction.
- Property Assessed Clean Energy or PACE Program
Some states in the U.S. including Florida, have a solar financing option called PACE Program, which stands for Property Assessed Clean Energy. You can borrow money from a municipality, which is your city, town, county or even state, and you can pay them back through increased property taxes over a period of 15 to 20 years.
Meta description: Here are financing options for solar panel systems installations in Florida.