As a solar expert with a deep passion and understanding of the solar industry, I am delighted to share with you fascinating insights relevant to residential solar loans. This is a critical area that shapes the installation decisions for many homeowners looking for solar panels for their home.
Getting started, we need to understand that residential solar customers mainly finance their solar projects via loans, cash, or using third-party sourced contracts like leases or power purchase agreements (PPAs). Recent data reveals that as of 2023’s end, 57% of residential solar installations were bought using a loan.
Is this intriguing to you as a homeowner considering solar? Might it be time to join the increasing number of homeowners exploiting the benefits of solar loans?
Indeed, compared to solar leases, there are numerous benefits that make solar loans the preferred choice among homeowners. With a loan, you have direct access to the federal solar tax credit and any state and local incentives. Besides, you are guaranteed greater long-term savings and control since the system will be yours.
Two fundamental variables make up a residential solar loan: the upfront dealer fee and the interest rate, reflected in the monthly payments. A notable trend reveals installers leaning towards lower upfront fees recently. We even have cases where 40% of the quoted loans on EnergySage, in the first half of 2024, were zero-fee loans.
However, while dealer feeds decrease, I must point out that average interest rates quoted in loan packages are rising. For example, the median interest rate for loans increased from 5.5% in the second half of 2023 to 7.49% in the first half of 2024. The rates for solar loans have escalated quite quickly since 2022, with the average rate then at 2.99%. Today’s average stands at 7.49% for a 20-year loan product.
One enduring question that homeowners ask me is which solar companies to trust. My practical recommendation is to leverage services like EnergySage, which will connect you to a pool of pre-vetted solar installers near you that offer competitive pricing. Nothing beats the assurance that you are getting high-quality solutions and saving 20 to 30% more than you would if you went at it alone.
To kick-start your solar journey today, I advice insightfully comparing your personalized solar quotes online. This exploration will help you to engage the services of a solar company that best matches your needs while providing the best price. An unbiased Energy Advisor can also prove invaluable every step of the way, ensuring you successfully set up your solar array for home.
Isn’t this an exciting time to embrace the solar revolution?
Original Articlehttps://pv-magazine-usa.com/2024/10/07/what-to-expect-in-a-residential-solar-loan/
