What You’ll Learn in this Article:
- What are Solar Panels?
- What is Solar Financing?
- What is a Solar Lease?
- What are the Pros and Cons of Solar Energy?
- Benefits of Solar Financing
- Benefits of Solar Leasing
- Different Plans for Each Type of Solar Financing
- Tax Benefits of Going Solar
- The Bottom Line
What are Solar Panels?
A solar panel, also called a photovoltaic panel or module, is a device that converts the earth’s most abundant renewable resource—sunlight—into usable electric energy. Electricity generated by solar panels is used to power your home, banked for later use, or sold to a local utility grid. As you might expect, solar panels are most efficient—and can save you the most money—when they’re installed in sun-drenched areas, but they can still lower your energy bills in cloudy climates.
What is Solar Financing?
Solar financing provides homeowners with the funds they need to buy or lease solar panels and have them installed at their home. Solar financing works similarly to loans made for cars and other home improvements. That means different lenders and loan options can have a range of impacts on the total cost of your solar installation and payoff period.
Solar loans and leases can be a worthwhile option for homeowners who want or need to bypass the large upfront costs of expensive solar energy systems.
What is a Solar Lease?
A solar lease is a type of solar financing. Homeowners who opt for a solar lease pay a fixed amount each month to use—and save money with—solar panels. Solar leases are typically long-term agreements, and terms differ among different lenders. A solar lease can be a worthwhile option for homeowners when a solar loan isn’t.
What are the Pros and Cons of Solar Energy?
The pros of solar energy make it an attractive investment for many people. Solar energy can lower your average monthly electric bill…for good. It can also free you from the grid, increase home values, and help save you more money in the long run. It positively impacts people and the planet.
The cons of solar energy pale in comparison. Solar energy is a great option for most, but solar panels won’t fit every rooftop. Homeowners who are about to move, or who are unsure about how long they’ll stay in their current home will likely want to opt out of going solar.
Solar panels are also expensive, and most homeowners can’t afford to pay the high costs upfront. That’s why Lumifi offers solar financing solutions to help you save money with solar.
Benefits of Solar Loans
Save Money Sooner—Without Paying High Upfront Costs
What makes solar financing worth it? For starters, a solar loan covers the high upfront costs of a new solar energy system with little to no money down, giving you quicker access to the advantages of solar energy without the stress of emptying your savings account. And, if your solar panels generate enough electricity to meet all your home’s energy needs, you’ll only have to pay the fixed monthly payment for your solar installation.
Buying Solar Panels Can Help Improve Your Home’s Market Value
Solar loans also help you improve your home’s market value. With this kind of solar financing, you own your solar energy system (similar to the way you own your car while you’re still making payments on it). Studies show that home buyers are willing to pay a premium for upgrades—including solar panels that can save them money on their energy bills.
Solar Panels are a Solid Investment with Great Returns
Next to paying cash upfront for your solar installation, a solar loan can save you more money by providing the highest return on your initial solar investment.
Benefits of Solar Leasing
Solar Leasing Saves Money from Day One
Leasing solar panels is a great choice for homeowners who don’t have the option to buy. A solar lease also means you can start saving money on your electric bills quickly—often without any upfront cost.
Free Your Wallet from Rising Power Premiums
Opting for a solar lease involves paying a monthly fee for solar panels and other equipment installed on your property. Here at Lumifi, those monthly payments are fixed, so you can easily budget your way to a brighter future and continue saving money—while everyone else is paying a premium to keep their lights on in the face of rising energy costs.
Different Plans for Each Type of Solar Financing
Solar Purchase Loans
Lumifi offers two term options and financing up to $100,000 for homeowners who opt to buy solar panels. Both options include an interest-only period for incentives or principle paydowns and a single amortization that takes place in the 18th month without any obligatory minimum incentive paydown. Want to take advantage of the federal solar tax credit or other local incentives? Learn how Lumifi’s solar purchase loan can help.
Solar Leasing
For homeowners who prefer to lease their solar panels, Lumifi offers two term options with fixed monthly payments and a performance guarantee of 85% of annual production (adjusted for degradation and shading). With Lumifi, you can lease your way to a brighter future with peace of mind knowing our buyout, transfer, and purchase options will meet your changing home ownership needs. Not a match for the federal tax incentives? No problem. Learn how Lumifi is still your perfect solution.
Tax Benefits of Going Solar
When it comes to solar energy benefits, look farther than your electric bill. Thanks to the federal solar tax credit, when you buy solar panels and have them installed before December 31, 2032, you will also save money on your taxes.
The federal solar tax credit is one of the biggest advantages of going solar because it offers a dollar-for-dollar reduction in the amount of income tax you owe—to the tune of 30% of your solar installation cost through 2032. This incentive is only available to homeowners who purchase their solar panels.
The Bottom Line
There are benefits and drawbacks to solar energy and solar financing, but for most people the pros outweigh the cons. To learn more about how solar financing can brighten your future, contact Lumifi today.
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