You have done your research into solar power. You’ve made up your mind to go for it. Now, it’s just a matter of deciding whether to pay for it upfront, or go for a financing option. Both have their own benefits.
If you pay upfront, you don’t have to worry about any additional payments, interest rates, or ownership aspects of your solar system. However, if you wish to take the solar financing route, all these factors come into play. So, it would be best if you researched them before making a decision.
Whether solar financing will be a smooth, hassle-free, and lucrative experience or not will be determined by the quality of financing options and services offered by the agency you choose.
So, here are some pointers to help you make the right decision:
- Many Solar Companies Offer Financing
That’s right; you don’t have to go searching for a solar financing company once you’ve finalized a solar installer. You can enquire about the solar financing options they offer to their customers. Chances are they’ll be working with a third-party financing company to provide attractive solar financing products.
- Enquire About a Soft Credit Check
The interest rates offered on solar loans are generally tied to your credit score. The higher is your score; the lower is the interest rate. So, it makes sense for you to get an accurate estimate of the interest rate that would apply to you based on your credit score before signing up for a solar loan.
However, credit checks tend to reduce your credit score, especially when they’re done one after the other in a short period. Therefore, what you can do is ask the solar financer to do a soft credit check. A soft credit check does not affect your credit score but helps the financer give you a more accurate estimate of the interest rate you qualify for.
- Compare Different Solar Financing Options
Besides comparing each solar financing option offered by a solar company, go ahead compare the products from multiple financing companies. That way, you will get a better understanding of how they work.
- Read The Language in The Solar Financing Agreement
Before you sign up for the financing product, speak to your solar installer, understand the terms, and make a decision. A good solar installer can point out important details that may have missed your attention.
