The benefits of transitioning to a domestic solar system offer long-term rewards for homeowners.
The choice to go green will save constituents money, reduce their carbon footprint, leverage tax incentives and enjoy an upgraded level of technology that gives the user complete control with smart applications.
The challenge arrives for clients who are in a position to examine solar panel financing plans.
The advantages are understood, but how do local residents actually pay for such a project?
We will offer a guide for those looking at the market, hoping to make sense of the industry and what types of options are on the table in 2020.
Fortunately, local residents can engage a pay-as-you-go system when assessing solar panel financing plans for their property. This means they can have the panels installed on their roof without paying any upfront costs to reduce that burden. They will then enter into an agreement where they purchase the power from the supplier which will be set below their current electricity rate. Such a scheme would become popular across Europe and now Australian communities can enjoy the same process to essentially lease the infrastructure.
There are some examples where constituents can install the product and enjoy an interest-free system for solar panel financing plans. It will be a model that offers a 0% interest rate from anywhere between 6 months to 2 years depending on the supplier and their policy. Homeowners might have to do a bit of homework to identify these outlets in their area as some rural and suburban communities might miss out on such a plan.
A direct method that can help to bypass much of the red tape and regulations with solar panel financing plans can be an application for a personal loan. This will place the client as the cash buyer and they can negotiate independently with the bank on the type of loan they can afford. Such a strategy can create further complications though and it is not commonly advised for these types of projects, but it is an opportunity when other selections have been exhausted.
The Green Loan
A very effective method that local constituents can use with solar panel financing plans is applying for a green loan. It is a maneuver that helps to spread the risk with repayments extending for up to 7 years. Financial institutions will be happy to offer these schemes for homeowners who are utilising the technology for energy saving purposes or purely through solar engagement.
Packaging With The Mortgage
If these other options don’t quite seem feasible when engaging solar panel financing plans, then collecting the investment together with the home mortgage could be the best choice. It helps to keep the entire process under one program which is good news. The bad news is that a home mortgage can be set for 20 years or more, seeing the price of the investment rise when making those payments over that time period.
The final plan that can be looked at with this type of installation is a simple one: paying via cash. The problem that many residents have is that they simply are not liquid enough to explore this option, but there are others who have large savings or have received an inheritance where such an investment outright is possible. It helps to eliminate all of the interest rate stress and extra management involved in prolonged plans.
The best strategy that any family can adopt when assessing solar panel financing plans is communicating directly with the local provider and any type of financial institution that offers schemes. Take note of all the criteria and work within a sustainable budget framework. There will be flexibility with any number of these excellent solutions for community members.