When we talk about Solar Financing, what comes to mind? Most of us will think about purchasing a solar panel system outright with cash. However, there are other ways to finance your solar panel system.
Types of Financing Options
One of them is Solar Leasing, which allows you to pay a fixed monthly fee to a solar company and you can enjoy a certain percentage of discount for the use of its solar panels. Another option is Power Purchase Agreements (PPAs), which allows you to pay the solar company for the electricity generated by the solar panels installed on your property.
Alternatively, there is also Bank loan where solar companies partner with banks like UOB, under the U-Solar programme designed to help businesses and homeowners convert to clean energy at low to zero upfront costs in order to find a flexible financing scheme that suits you. Before deciding on a financing option, it’s important to do your research and compare the costs and benefits of each option to find the one that best suits your needs and budget.
On Decision-Making
It’s crucial to note that the ‘financing’ option you choose will impact your long-term savings. While purchasing a solar panel system straight may have a higher upfront cost, it can provide higher savings over time, as you will own the solar system and the electricity it produces. On the other hand, leasing or a PPA may have a lower upfront cost, but you won’t own the system and won’t be able to benefit from long-term savings. Weighing the pros and cons of each financing option before making a decision is vital.
In addition, it’s important to consider the environmental impact of your financing choice. By choosing to go solar, you’re already making a positive impact on the environment by reducing your carbon footprint.
Aspects of Consideration
Overall, there are many factors to consider when choosing a financing option for your solar panel system. It’s important to do your research and consult with experts to find the option that best suits your needs, budget, and values. By making an informed decision, you can maximize your long-term savings and make a positive impact on the environment.
Another factor to consider when choosing a financing option for your solar panel system is the length of the contract. Leasing and PPA contracts typically last between 10-25 years, while purchasing outright can provide a system that lasts up to 30 years. It’s important to consider how long you plan to stay in your current home and whether the length of the contract aligns with your long-term plans.
It’s also worth noting that some financing options may require a credit check or down payment, which can impact your ability to qualify for financing. If you’re considering financing your solar panel system, it’s important to check your credit score and financial situation to determine which options are available to you.
In summary, choosing a financing option for your solar panel system is a big decision that requires careful consideration of multiple factors. By doing your research, consulting with experts, and weighing the pros and cons of each option, you can make an informed decision that aligns with your goals and values.
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You can help in being a hero of environmental sustainability and include solar panels to cut down on your electricity bills too! Here at SunPro Energies, we are committed to providing solar solutions for your residential, commercial and industrial needs. Contact us to enquire more and arrange for a free site visit.
