Governments, energy companies, and consumers across the US are realizing that solar power is the future of an energy-safe and self-reliant country. The strong push for residential solar is evidence of this realization. For Connecticut homeowners, solar power offers cost savings, reduces their carbon footprint, and even produces significant profits over the long run.
However, an upfront investment may not be the most attractive option for you, especially if you intend to invest that money somewhere else and get outstanding results. So, what can you do?
One way to achieve your solar goals and your investment goals is through solar financing. Solar loans and solar leases make it possible for you to get a solar panel system for your house without the upfront investment and enjoy its benefits while diverting your money where it’ll deliver the best results for you.
However, the question remains: is solar energy cost-effective despite the financing costs?
Let’s find out.
Solar Loan Profitability
Your solar installation comes with a variety of incentives, benefits, and potential savings. The federal income tax credit and RSIP program offer you a flat upfront reduction in costs. Although sizeable, they may turn out to be small compared to other benefits and incentives you qualify for.
For instance, the cost savings alone on monthly electricity bills can be as high as $41,400 over a 30-year period, at an average monthly bill of $115.
Then there is the net metering program which can add thousands of dollars more to you in steady income for over a decade.
In comparison, the best solar financing options come with minuscule single-digit interest rates. Green Power Energy, in partnership with Sungage, offers interest rates as low as 0.99%.
So, the financing costs of your solar system will amount to a fraction of the savings and potential income from solar power.
It’s a no-brainer for solar customers. There’s just one thing you need to focus on here – the rate at which your monthly bill is calculated. It must be lower than your utility company’s electricity price, and you must lock in the rate for several years.
If you ensure both, you are guaranteed to enjoy all the cost savings offered by solar energy with none of the liabilities. You will be shielded from utility company’s price increases for the entire lock-in period of your solar lease.
Whether you go with a solar loan or a solar lease, you can expect to realize impressive cost savings from taking the solar route.