Homeownership is a major responsibility. A home requires care and financing. You pay your monthly mortgage bill and set aside an amount for maintenance, repairs, and renovations. Sometimes the need for an upgrade or replacement appears suddenly. You also may be faced with an opportunity to update the property with a feature such as LaVina,FL solar panels for homes by LaVina solar companies.
Florida is among the states where a solar panel installation increases the property’s values. Your home has the potential to sell for $10,000 more with the panels. At the least, you can factor the panels into your asking price calculation.
Since your state receives plenty of sun year-round, there’s more natural solar energy at your disposal. By capturing it, you can achieve a greater degree of energy independence. Energy independence comes in handy during peak air conditioner-use season.
Even when the sun hides in the Sunshine State, net metering and solar batteries store excess energy from the sunny days for later use. Orange solar companies go over these details with you during a consultation.
The average cost to install residential solar panels is $19,000 for a 1,500 square foot home at 6kW. The range to install this system starts at $9,000 and goes up to $28,000 with installation. Factors that impact total cost include installation location, equipment needed, and total size. You’ll also incur a cost for the solar battery.
Homeowners who request a higher kilowatt pay more for the total system. You pay more upfront, but you also break even on your solar investment quicker.
If your home’s roof has slopes and arches, they pose a challenge for the installers. Extra challenges faced in the installation phase increase the total labor cost. Once everything is said and done, you’ll end up with an energy system that affords you self-sufficiency. It’s a pretty great perk to own.
Given all the financial considerations of installing residential solar panels, the next step is to obtain the financing.
The following are seven steps in financing Orange solar panels for homes.
Evaluate Your Savings
A solar panel installation runs between $9,000 to $28,000. Some homeowners have several thousands of dollars set aside in their bank account because they follow the one percent rule. The rule encourages homeowners to set aside one percent of their home’s value. The average home value in Florida is $300,000. At one percent, that’s a minimum savings of $3,000 at all times.
If you place the $3,000 in a money market savings account, the bank pays you to leave the money untouched. It’s a nice trade-off. Every bank must have a minimum amount stored in liquid assets against their outstanding debts.
Homeowners who have savings to cover the cost of the solar panel installation can use it. Some homeowners carry a financial adeptness that allows them to leverage debt to their advantage. Using your entire savings doesn’t make sense if it leaves you cash poor. Nonetheless, it’s one option.
The price of solar panels continues to drop as technology improves. If you currently can’t afford the installation with a cash payment, start saving. Automatic deposits into a savings account help homeowners save for a host of home improvements. Set it up for a year and forget about it. After a year, check in on the account. There will be some funds there to start your solar panel installation fund. Roll over the savings into a money market account to help the funding grow faster.
Find Solar Panel Rebates
The real cost of installation of LaVina,FL residential solar panels ranges between $9,000 to $28,000, but that isn’t always the final cost. In 2008, the United States government launched a solar rebate program to encourage the adoption of solar energy by Americans. In 2021, the government continues to offer rebates, tax credits, and other incentives.
For example, in Florida, a homeowner receives a 26 percent federal solar tax credit after purchase and installation. To qualify, fill out the appropriate forms and submit your tax returns. The credit is set to reduce to 22 percent in 2023. In 2024, the program is expected to expire.
With the American government, things can at the drop of a dime. Although the credit is expected to decrease and expire, government officials can vote to expand it.
As time passes, all technology becomes more affordable. The first personal computer cost $1,500 in 1981. With inflation, that equals $4,500 in 2021. The same logic applies to the cost of purchasing and installing solar panels. In 2008, the rebates drove down the cost the homeowner incurred. Investments in the United States Solar Technology Office helped make the panels more affordable.
Orange solar companies install the panels; they’re also marketers and salespeople. To keep their installers busy, it’s up to the companies to find customers. It’s no secret that cost is a barrier for some homeowners. Thus, solar panel installation companies stay up to date on the latest rebate, tax credit, and incentive information.
You’ll know you’re in good hands if your potential solar installers show knowledge in financing tips.
Find Solar Panel Deals with Orange Solar Companies
In addition to rebates, tax credits, and incentives, LaVina,FL solar panel companies pass on manufacturer discounts, savings, and other deals.
Since solar panels haven’t reached mainstream status, suppliers, manufacturers, and installers continue finding ways to entice homeowners. The benefits of solar energy are coming to light, but it’s a balancing act. Homeowners require help finding ways to balance the benefits with the cost. Therefore, it’s a team effort among installers, manufacturers, and the American government.
Summer remains the most popular time to install the panels. Studies show that it’s best to install in the winter. Florida receives the most average rainfall in August. In the winter it significantly drops. Homeowners complete the bulk of their home’s renovations, repairs, and replacements in the summer. This turns the winter into the offseason for construction-related professionals.
Solar companies have a direct relationship with their suppliers. Suppliers face the offseason too. Plus they have employees who work regular shifts that expect a paycheck in return for their services. To keep operations going, solar panel suppliers and manufacturers offer discounts. Discounts that bring in customers as opposed to full-price offerings that bring in none outweigh the hit to the price.
During the winter, check in with Orange solar companies. You might find an off-season deal.
Speak with Your Bank
It always helps to develop a relationship with your banking institution. If things are really good between you, you probably maintain your mortgage, checking, and savings accounts at the same institution. Some financial advisors encourage the public to spread the wealth around, but loyalty pays off too.
If you have a positive relationship with your banking institution, you can explore solar panel installation financing with them. Going over your plans prevents a shock on their end if you request a large withdrawal from your savings account.
The mortgage has evolved. It’s no longer just the 30-year fixed-rate home loan, several varieties exist on the market. There are interest-rate only home loans and no deposit mortgages. There also exists the Homestyle Energy mortgage.
Specialized mortgages have built-in features that benefit a homeowner’s financial goal. For example, residential investors enjoy interest-only mortgages. It affords them five to ten years to purchase a property, fix it up and sell it before the monthly payments balloon to their full amount.
Banks receive a lot of information about the economy. Bank representatives know about the initiatives governments push forward. Therefore banks are privy to associated public benefits. Sometimes the government partners with banks to spread the word. Your bank may run a promotion that helps you finance the solar panel installation aside from loans and other debt.
A mortgage focused on alternative energy helps the homeowners finance their LaVina,FL solar panels for home installation.
Evaluate Your Home’s Equity
Another method to finance the solar system installation is a home equity line of credit or home equity loan. Financial professionals encourage individuals to become homeowners soon because homeownership allows them to start building wealth on paper.
As soon as you start paying off your mortgage, you start building equity. Equity is the difference between the outstanding mortgage amount and the appraised value of the property. Banks and lenders use the positive difference as collateral for other types of financing including the HELOC.
HELOCs give homeowners favorable repayment terms and interest rates. If you’re in good standing with your bank and lender, it’s possible to leverage the debt in your favor. After some time, you may be able to refinance your total debt with the lender to obtain a better interest rate too.
Suffice it to say that it’s possible to finance a solar panel installation with debt and favorable terms.
Consider a Personal Loan
Another financing option for a residential solar panel installation is a personal loan. Personal loans have very few restrictions. If you want to use it to finance the new solar energy source on your property, you can. Ensure that you borrow enough to cover the total costs.
Personal loans also help cover the difference between a HELOC and the total cost to install the energy panels. They come in handy when you need $5,000 or less. Personal loans have higher interest rates than HELOCs and mortgages, but lower rates than credit cards.
You can fund the installation with a credit card, but your costs increase on interest charges alone. In 2021, the average credit card interest rate stands at 16%. The average interest rate for a mortgage is 4.5% while the average interest rate for a HELOC hovers at 5%.
It’s a good idea to obtain financing that has a low or no interest rate charge. That’s why savings makes the most sense. You’ll miss out on the interest payment paid to you by the bank, but it’s just a paper loss.
When you combine your financing with rebates and discounts, your solar panels may be installed at a reasonable cost.
Solar Lease/Purchase Agreement
As of 2021, 28 states and the District of Columbia allow what’s known as the Solar Lease/Purchase Agreement (PPAs). In 2021, Florida is among seven states that don’t allow the practice. When it comes to the government, things change. Whether the practice is prevented because it requires more study or it competes against another current energy source isn’t 100% known. Individuals continue to speculate.
Nonetheless, here’s a brief overview in case things do change in the Sunshine State.
Developers partner with homeowners on solar panels for homes installation by solar companies. The developer covers almost all the costs associated with the purchase of the panels and the installation. A developer establishes a contract lasting up to 25 years. The energy produced by the system is sold to the homeowner at a lower rate than the municipality.
The developer creates a stream of income and receives all discounts, rebates, and incentives associated with the installation. A homeowner becomes the host in this arrangement. If they remain on the property and the contract expires, the homeowner can extend the contract.
It’s an interesting arrangement that benefits some homeowners. It’s one way to adopt a solar energy system without shelling out the upfront costs associated with the installation, maintenance, and repairs.
For more information about LaVina,FL solar panels for homes, contact Solar Energy Specialist at 866-407-2047. Our team answers your questions and book an energy audit appointment. To view a full list of our services, visit our website.