Solar financing options can normally be grouped into two main categories: First Party and Second Party. When you are looking at solar financing, you should understand that there are many choices available to you. However, in order to get the best financing option for your needs, you need to know the tips and tricks to help you out. Solar financing has become a very popular choice among those looking to invest in solar energy. Here are the main solar financing options on Maui to consider.
The most well-known First Party option is to get a Loan. The First Party system is pretty straightforward. The lender will pay you the lump sum money upfront, with the understanding that you will repay the loan on the agreed time period. Many homeowners take this route to get a solar energy loan. The downside to First Party solar financing options is that you usually need to qualify for a loan to participate in them. Also, many homeowners who take on a First Party system find that the interest rates can be steep.
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The next solar financing options are Third Party and Solar Lease Options. There are pros and cons associated with both of these solar financing options. With a Third Party system, you are not buying solar panels and you do not have to pay anything upfront. This makes it very easy to get approved, but it can also make you pay a lot more if you don’t qualify for a low-interest rate. On the other hand, when you sign on with a solar lease option, you do have to sign on with the company and they often set up monthly payments based on the level of your solar lease.
There are two ways to secure a solar loan. First, you can look into getting a loan from your local bank. If you have good credit, you may be able to secure a home equity loan with relatively low-interest rates. Your monthly payments will likely be fairly high, however, because you will be paying off the interest on the loan for a number of years. If you want to take this route, talk with a solar loan consultant to find out how much you can afford to borrow.
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Solar Lease Options is a third-party ownership option. This option includes buying the panels and paying someone else to maintain them. You would use the payments to pay off the cost of the system over time. A few advantages to this financing option include that you do not need to pay property taxes or maintenance fees on your new solar panels. Also, with a Third Party ownership plan, you do not need to put upfront cash for the initial purchase of the solar cells and parts. Also, you can lower your electric bill by choosing to pay someone else to provide you with electricity.
Online Financing Options include taking advantage of many online loan programs. Many solar system purchase programs offer cash financing options, which allow you to borrow the money to pay for the panel. Online solar system buy programs typically require no application fees, so even if you have bad or poor credit you can still be able to afford the system. Most online finance companies offer 24-hour access and can answer any questions you have regarding your solar system purchase.
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Pre-Offer Recourse is a non-recourse type of financing option for a solar system purchase. The company will allow you to keep the initial cost of the solar panel system as long as you keep up with your monthly payments. If you are late on one payment, the company will wait until the due date to send the payment. At that time, they will start payment arrangements with your new lender. If you complete your monthly payments on time, you can keep the panels and pay less in interest over time.
