If you are thinking of going solar, it could mean thousands of dollars in costs. That money is not something that every homeowner can afford to pay, especially in cash. However, that doesn’t mean that there aren’t any financing options to help you go solar. In this article, you can find out whether it’s a good idea to finance going solar with a home equity loan or a solar loan.
Why Choose Solar Loans?
Solar loans are a popular type of loan that many homeowners use to finance their solar panel system installation. This type of loan is quite popular because homeowners can earn a tax credit as well as SRECs with a no money down solar programs. It’s one of the most significant benefits that solar loans offer.
Solar loans are offered alongside many other solar financing programs. Usually, they come as pre-packaged solar financing solutions. With these pre-packaged solar panel solutions, you can have the financial resources to install the solar panels, which will eventually help you save on energy bills. Besides coming in packages, it’s excellent that solar loans come in easy approvals and flexible terms.
The terms to pay a solar loan usually range from five to twenty-five years. Since they are easily approved, you don’t need to wait a long time to get the financial assistance you need. To get approved, you usually have to talk to a solar consultant. They will be the one to get your application approved for $0 down payment.
Often, approval is granted within minutes after calling the solar company. All of these advantages make solar loans a popular choice for homeowners when getting solar panels, mainly if they don’t have a home equity loan.
Why Choose Home Equity Loans?
Besides solar loans, one of the popular options is using a home equity loan. Many homeowners that already have equity in their residential property prefer to use it to finance their solar panel project. While not a loan customized for solar, it can be the best option in some cases. One of the benefits of using a home equity loan is getting a rate that’s as low as prime.
You can sometimes get a better rate with a home equity loan than with solar loans in New Jersey. To be sure, it’s best to check with your local solar company to determine the best options. In some cases, the rates for home equity loans can be up to 10% less than going solar using a pre-packaged solar loan. Another advantage of a home equity loan is it can help you avoid putting a lien on your house.
Each type of loan has their advantages and also disadvantages. In most cases, going with a solar loan in NJ is the best financial arrangement. This way, it will become easier than pulling equity from your home.