You Can Get Solar Energy For No Money Down and No Money Out of Pocket, but it’s not free.
In this article, we are going to dive into what exactly $0 Down $0 Out of Pocket means in regards to adding solar panels to your home. If you are shopping for solar panels in Orlando or Florida then you have inevitably have heard the Phrase “Get Solar Energy for $0 Down and $0 Out of Pocket”. This claim is designed to get you excited about adding an energy efficient product without any money involved. That might be where there begin to be some confusions. Here are some simple explanations to this statement as well as some guidelines to follow to get your best deal on solar panels.
Check out other great videos to help you understand more about solar energy and Solar Companies Youtube – Emerald Sun Energy Channel
What does $0 Down (NO Money Down) mean? First off it is NOT FREE. You are buying something. However, if you are able to qualify for available financing then there is No Money Down as the entire purchase can be funded because many of the financing options available for solar companies do not require any money down. Hence the entire solar project will be funded by the financing company.
What does $0 Out oF Pocket (No Money Out of Pocket) mean? This statement may be the one that causes the most confusion because it often leads people to believe that it is free. Again it is NOT FREE, you are buying something. However, if you qualify for available funding it is true that you will have $0 Out of Pocket. The easiest way to understand this is to look at the example below. What it points out is purchasing a solar panel system for your home will not affect your budget. Meaning you can use the money you already are paying the power company to instead pay for your solar power system that will improve your home’s value and convert a variable expense (power bill) into a profitable asset (solar panel system). In most cases, you will actually be cash positive depending on which financing option you choose. So you can purchase your system with the money you already spend because your solar panel financing payment will be less than the amount of money you save on your power bill by switching to solar.
What do I need to do to qualify for this solar program? Simply call Emerald Sun Energy a local Florida Solar Company located in Orlando and serving all of Central Florida, We will first do a customized energy consumption analysis to determine the size of the solar panels system you need. We will then draw out a solar panel spec drawing so you can see how the panels will look on your roof. Then you can choose the financing option that best meets your needs and fill out the online instant approval application, we will have a decision within minutes of application. The basic qualifiers are you will need a 680 credit score or greater to qualify. The financing company will also be looking at your debt to income ratio to determine if you are a good candidate for a solar energy system. Usually, a debt to income below 45% with a household income of $50,000 is able to be approved.
Example of how $0 Down $0 Out of pocket looks like:
With the advanced additions of Solar Energy Financing Florida Homeowners can get solar for No Money Down and No Money Out of Pocket
First, we must figure out the amount of money you will be saving on your power bill every month to find out how much money you have available on a monthly basis to pay for the system. In the above example of an actual solar customer, before they started using solar there power bill was $231 per month and after they switched to solar energy their power bill dropped to $29 per month. Which is a monthly savings of $202 per month? So that means so long as we have a financing option that requires less than a $202 a month payment then we will be able to provide solar for $0 Out of Pocket because we are just redistributing money you are already spending to convert an expense into an asset.
Next, we will examine the financing options offered by the above Orlando Solar Company.
In the above example, you can see the available financing options for the customer where a 12 Year or 144 payments of $199 which is $3 less then they would pay the power company. Or a 20 year (240 payment) option would be $162 per month essentially saving customer on average $40 over what they would have paid the power company. That is a yearly positive cash flow of nearly $500 plus they improved the value of their home and reduced their carbon footprint. WOW!!
Please keep in mind in the above example we are using Net Sales Price which is the price of the Solar Panel System after you received your 30% Federal Tax Credit. If you somehow do not qualify for the tax credit you will still be able to get the system for no money out of pocket but it would be only on the 20-year option that would accomplish this. Either way, you are purchasing an asset using someone else’s money to pay for it. This is one of the biggest ways wealthy people keep and grow their wealth. You can see more about that is this video “Solar Energy is a Better Investment Than The Stock Market”
As you can see from the explanation and example provided $0 Down $0 Out of Pocket isn’t free but it is a tremendous opportunity for homeowners to be able to add Solar Energy to there home without affecting their monthly budget. Please keep in mind that the 30% Federal Tax Credit expires at the end of 2019 so your window for taking advantage of such a great opportunity is closing. There will be a couple of years of reduced tax credits but you will have missed out on the biggest one, while you can do it without affecting your budget.