May 17, 2024

The Solar Panel Financing Secrets That Most People Don’t Know

3 min read

Right now, is there anyone who isn’t thinking of getting solar panels for their homes? Solar panels are helpful sunlight into usable energy that meets the needs of homeowners. At the same time, solar energy is fast becoming an environment-friendly power source.

Solar panels are also handy for storing electricity for use at a later time. The list of benefits is endless, and the potential is very high. However, the major drawback to using solar panels is their price. If you know anything about the solar panel installation Kent Residency offers, you’ll see that it doesn’t come cheap.

So, the question is, how do you afford those panels? In other words, what do you need to know about solar financing?

What Is Solar Financing?

In a nutshell, the concept of solar financing revolves around finding the best ways to subsidise the purchase of solar panels. Diving further, it’s seen as sourcing different sources for more affordability of the panels. It also involves considering other factors that impact the purchase of solar panels.

For instance, combined with the finances, you must consider the environmental impact, how good an investment is, and if it’s compatible with your location and household. Moreover, the most critical aspect depends on the affordability of those panels.

Different Methods of Solar Panel Financing

1. Cash

It might seem like everyone buys their solar panel with cash, but that’s where you’re wrong. In fact, what you don’t know is that this method is the least common. Why? That’s because it’s not the cheapest way to get solar panels.

Solar panels cost in the region of £20,000 to £25,000, and sure, most people who have this money in their account opt to buy the panels when needed. However, it takes some time to break even. On the bright side, you only pay once, but at the same time, it’ll take a while to get your money’s worth.

2. Loan

The next option is to apply for a solar loan. It’s commonly adopted by less wealthy individuals who can’t afford to buy the panels. Moreover, it’s a move that comes with interest that will be paid off on the loan provider’s terms.

Speaking of loan providers, they are usually the solar companies themselves or third-party organisations associated with those solar panel companies. Solar loans are not as typical as other types of loans, so due diligence should be taken when searching for the right loan source.

3. Rent

Another affordable solar financing option is to rent those panels. What happens here is that you sign a lease or agreement with the solar panel company and agree to pay a certain monthly fee for using the panels.

In essence, you’re paying for the electricity generated by the solar panels while the company still owns and takes care of those panels until they decide otherwise.

Wrapping Up

There are many reasons to get solar panels, but lack of money often poses a barrier. That’s why it’s crucial to understand how solar panel financing works and pick the best option. Such a decision will depend on your needs, financial status, and long-term plan.

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