When Should You Go Solar with a Solar Loan?
Solar Loans have proven to be a fantastic option for those who want to receive all available incentives but would prefer not to pay for the system outright. A Solar Loan offers you 100% of the monetary benefits of solar while keeping your money in the bank.
In recent years we have seen an uptick in not only the signing of Solar Loans but the customer acceptance of Solar Loans. This has also been documented by Greentech Media in their very relevant article entitled: “Solar Loans to Become No. 1 Consumer Finance Solution for Residential Solar in 2018. According to new data from GTM Research, direct ownership continues to outpace solar leases.”
The way a Solar Loan functions is rather simple:
- Simple and Fast Credit Approval Process
- No Payments Till the System is Installed and Operational
- Loan Terms of 5, 19, 15 and 20 years
- No Down Payment Required
- No Prepayment Penalty
- No Home Equity Required
- Min FICO Score of 640
- Max DTI Ratio of 50%
- Primary applicant must own home
The most important part of going solar with a Solar Loan is to already be paying Federal Income Taxes. As discussed in our article What is the Federal Tax Credit for Solar?, it is very important you are already paying Federal Income Taxes so that you can use the 30% Federal Tax Credit to get some of those payments back. If you are not paying Federal Income Taxes then it may be best to consider a Solar Lease.
For an honest evaluation of your solar options and straightforward talk, give us a call at 732-SOLAR-NJ. We promise to not waste your time and to give you the straight facts about your solar savings.
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