It’s possible to finance solar panels through a solar panel loan.
Loans from your local credit union can provide you with all the money it takes to install your solar panels – often without requiring a down payment. It’s similar to a home improvement loan and it is backed by the solar panels you install as collateral. You, the homeowner, are responsible for the maintenance on your solar panels.
Most solar panel loans are broken up into parts or only cover around 70% of your solar installation because the bank expects you to apply the tax credit you receive to your solar installation costs.
What’s this tax credit everyone talks about?
The investment tax credit (ITC) is the USA federal solar tax credit for installing solar and it originally allowed you to deduct 30% of the cost of installing solar power from your IRS tax bill. It applies to both residential and commercial solar and has no limit. It can save the average homeowner anywhere from $3,000 to $10,000 on their solar panel installation.
The price of installing solar is falling across the country, which makes financing solar with a loan from your local bank or credit union easier than ever. Get a free quote from Big Red Solar now.
The ITC was first created by the Energy Policy Act of 2005 and was going to expire at the end of 2007, just two years later. Now it is more than a decade later and has been renewed over and over again in the United States by congress. The tax credit is currently available through 2021.
The tax credit reduces the overall cost of your solar system in the end, even though its not paid to you upfront in the form of a cash rebate.