How to get the best deal on Solar Financing

These Tips will Make your Solar Experience Even more profitable

Understanding your Solar Financing Options:

Understanding you solar financing options is usually one of the biggest indices that will give you the biggest return on investment.

A beautiful thing going on in the Solar Industry right now is that you can get solar for – No Money Down & No Money Out of Pocket!  It is true but it often creates confusion in the buyer’s mind so it is important to understand it.  The confusion is that sometimes people believe that the solar energy system is free, it is not.  What is being implied in the above statement is that you will be able to use the money you are already spending to fund the purchase because the financing options do not require any money down.  So the money you will save on your power bill will be more than the money you will have to pay to finance the system.  I go into much more details in my article “Can I really get Solar for $0 Down and $0 out of pocket”.

The next thing to understand when it comes to your solar financing is what your monthly payments will be vs the duration of the loan.  What this means the more your monthly payment for the solar panel system will be the shorter the duration that you will have to pay on the loan.  In most cases you can have a monthly payment lower than the amount of money that you will save on your power bill with a 12 financing option or 144 payments.  Since your solar panel system hence a performance guarantee of 25 years you will be getting 13 years of energy offset on your power bill which will accumulate to huge savings.  That does not factor in the savings you will receive from being insulated from the power companies rate increases which averages 4% per year.  That means you will make an additional 4% compounded every year even while you are paying for the system.

You can save money immediately if you choose a 20 year payment plan instead.  In this option you will save anywhere from $40 – $80 per month depending on the size of the Solar Panel System you install.  You would still see an increased saving of 4% a year as well while making money from day 1.  If it is $50 per month that is a cash savings of $600 in year one and in year 2 that would jump to $624.  However, you will have to make payments for an additional 8 years but the payments will represent a larger portion of your power bill.  The additional 8 years will cost you more in interest because of the additional 96 payments and most of the 20 year options are also at a slightly higher interest rate.

It really comes down to what your main financial goal in regards to going solar.  If you are looking for the most return on investment then the 12 year option will give you that because you will be making higher payments (still less than you pay the power company) with a lower interest rate hence lowering your overall actual cost of the system when compared to the 20 year option.  The 20 year option often makes sense for people who are on a fixed income and want to lower their overall monthly expenses.  So you make less overall but you make more now.

There are many great financing options available today to purchase a solar power system for your home.  There are some sub-prime rates available, what that means is if prime is 5%(like it is now) and we are able to offer you a rate of 2.99 then that would be a subprime rate.  Our current 12 year option available is at a 2.99 subprime rate.  It is great but it does come with a 17% financing charge that is added to the initial cost of the solar panel system.  At first look you would say NO WAY!  However it winds up being the cheapest solution in the long run and will generate the greatest return on investment other than paying for the system in cash.  We have a 20 year available with no financing charges at a 6.95%.  So you do not pay more for the system but you will pay a 6.95% interest rate for 20 years.

Now we need to understand what the true cost of the solar panel system is vs the retail cost of the system.  The retail cost of the system would be the price of the system with any added in financing charges.  The true cost of the system is what you will actually pay for the system.  To figure that out you will take your monthly payment at multiply it by the number of payments required to fulfil the loan.  If we look at an example of a 12 year 2.99% system that generates $225 a month of electricity.  Your monthly payment would start at $220 per month and when you multiply it by 144 (12 years) your true system cost is $31,680.  Keep in mind that this option also included the 17% financing charge.  Let’s take a look at the 20 year 6.95% (with NO Financing Charges added in) system that generates $225 a month of electricity.  Your monthly payments would be $168 per month and when you multiply it by 240 (20 years) your true system cost is $40,320.  So the system that had 17% added to the cost saved the customer a total of $8,640.  What that means is the subprime rate is a more important variable then the cost of the system.  That is an additional $8,640 you can calculate into your return on investment.

You are also able to secure your own financing through a home equity loan.  The benefit of that is you can write off the interest that you pay on the loan.  You might have a hard time getting a subprime rate but you may be able to get prime (5% in the above example).  That combination may save you similar about of money as the subprime rate.

Checking to see if PACE is available in your area may be another option to consider.  PACE (property assessed clean energy)  allows you to use your property tax to pay for the Solar Panel system.  You can spread the cost out over 25 years and pay it through your property tax.  This option is only available in certain communities in the Orlando and Florida area.  If it is available it will look at the equity that you have in the property as the main qualifier.  Hence if you have poor credit this is a great option because it is not dependent on your credit score but it has limited availability.  It is also transferable to the new homeowner which means you can get the additional value in your home and not have any other financing options to pay for it.

Retirees have an additional option available, they can look at a hecm loan or reverse mortgage.  I like this option for seniors who are looking to free up as much money as they can off of their monthly budgets.  With a Hecm loan they can use the equity in the home to purchase the system and then use the equity in the home to make the payments on the system.  Essentially freeing up the entire amount of money that they will be saving on the power bill into new dispensable income.

Case Study – Proves Solar Energy Works

Solar Before and After Comparison

Here is one of our happy solar energy customers power bills from February 2019 from here in Orlando Florida. As you can see he had a power bill of $190. On the right you can see that his power bill was reduced to $9.83 after solar energy installation in Orlando Florida. We compared February 2020 so it is from the same month to get direct comparison.

I-Pagan-Before

Power Bill from Duke Energy before Solar Installation in Orlando Florida

Ipagan-after

Customer reduced duke power bill after solar installation in Orlando Florida

If you look at the after bill you can see it highlighted in red that he received an additional 135 kWh credit for future usage, meaning he out produced what he would need ant the credit will be applied to future bills. In Florida this is an important strategy because in the winter months like February Orlando homeowners will produce more solar energy than they can use. These credits will be applied to months when they use more energy than they produce. Like June and July.

So you can see that you can destroy your power bill with solar Energy! Call Now and Start Saving!! Huge Tax incentives will end at the end of 2020!

Can I Really Get Solar Energy for $0 Down & $0 Out of Pocket

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

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.

Picking The Right Solar Company is More Important Than Price!

Picking The Right Solar Company is More Important Than Price!

As we are entering the great gold rush of Solar Energy it is important to pick the right company to do the job.  Right now Solar Energy is such an amazing opportunity when you factor in great low financing rates with the Federal 30% tax credit (due to expire in 2019) and rising energy costs (power companies raise their rate by an average of 4% a year), there has never been a better time to switch to solar.  It is so good right now that you can literally convert a variable expense into a profitable asset all the while using the money you are already spending on your power bill to do it. If you qualify you will be able to incorporate solar power for $0 Down and $0 out of pocket. I didn’t even mention the environmental green energy benefits that solar can provide our environment over the current energy sources.

The biggest problem I find is that the general homeowner doesn’t have a strategic plan for what solar company they should use to install their solar panel system.  As a good consumer, their default position is to get the best price possible. This is the first huge mistake. Don’t get me wrong I am a savvy consumer and choose to do my due diligence as to not overpay for the products and services I desire.  It is a mistake because you often open yourself up to less reliable companies that usually use less than desirable equipment and take cost-cutting installation strategies to reduce their cost.

I believe the proper process for choosing a solar company should be multifaceted with the price just being one of the variables to consider.  I believe the most important variable should be the reputation of the Orlando Solar contractor that is going to install your solar panel system. I can’t tell you how many phone calls I get from solar owners who need service or an uninstall/reinstall for a roof change that can’t get in touch with the solar company that installed there system.  Sometimes it’s because the company just doesn’t get back to them but most often it is because they have gone out of business.

Solar is booming so why are so many installers going out of business?  Mainly they are underbidding the projects and not providing any resourceful customer service.  This then generates poor reviews and reputation which is a death sentence for any business. These people are then just left flapping in the breeze and needing a new solar company that is going to charge them retail rate on any work that needs to be done as they did not profit from the original installation.  So customers who are in this situation end up paying more than someone who chooses the right company from the start even though they may pay a little more today it will save them a ton tomorrow. Especially when you factor in the headaches that are caused when you can’t get in touch with your original solar installer.  That is not to mention that many of them will cut costs on there installation process meaning you may have significant maintenance, for example, if they do not take the time to tie the solar panel racking system into your home’s Truss frame, you will be exposed to the potential for your system to leak.

The beautiful thing about the solar industry today is that you can get a great system from a great company and reduce your energy cost while improving the value of your home all with $0 out of pocket.  What I am getting at is getting VOLUNTARY CONTRACTION IN MUSCULATIO winstrol oral stanozolol 50 terry tells her yes almost everything, she deserves her place in kosmo, who is trying a plan q will feel a lot of effort to begin bodybuilding and face to face time. the right company and the right solar equipment is more important than getting the best price. Because paying the power company in the current model is the worst deal out there and that is why these bottom feeders are able to prey on inconspicuous homeowners.  The use the homeowners desire to get the best price all the while setting them up for a higher long-term expense on their solar panel system. Don’t get me wrong this is still a better deal than paying the power company but why not just simply get the best deal by factoring in all of the important variables.

First is to make sure that you are getting the right equipment for the system you need.  Many companies that are trying to sell you a system are doing so by not including important equipment that will make your Solar panel system more efficient, effective and will save you a lot more money down the road.  You must make sure you get a system with power optimizers or microinverters. These devices will help your system to perform at the highest levels. I prefer Power optimizers over microinverters for a few reasons that I will not get into here.  I cover all of that in my “Secret Guide to Buying Solar” where you can get all of that information plus plenty of information on how to spot a dishonest contractor.

Picking the right solar company will make all of the difference in your solar energy experience.  With all of the money that you will save over the life of the system, it is worth paying a little more for the right company.

Here are 3 things you can do to vet your solar energy company.  First is check out their Solar Google reviews. If they have bad reviews you can simply disqualify them from your process.  To be fair if they have only 1 bad review you can read the review and determine if it was a situation the solar company tried to resolve or not, but if they have a pattern of bad reviews then simply disqualifying them is the wisest solution.  Second, call them and see how long it takes for them to get back to you. If they do not get back to you right away while you are in the purchasing phase then you know they will likely be slow at getting back to you after you have purchased a solar panel system.  I would recommend trying this a few times to make sure they give you consistent quality customer service. Finally, have them give you 2 or 3 former customers who you can contact and ask them how their buying experience was as well as the follow up after the system was purchased,  has the system performed as promised and how is their ongoing customer service.

If all else is equal in terms of quality of solar products and the reputation of the solar company then I think the price can be a very strong determinant for which solar dealer to choose. I know at Emerald Sun Energy we take your Solar journey and customer satisfaction very seriously.  Our motto is “We look out for your interests as if they were our own”. Competitive pricing combined with exceptional service is our secret sauce for success and hope we gain the opportunity to add you to our growing list of completely satisfied customers.

Questions you should ask your solar company – part 5

Questions you should ask your solar contractor – part 4

29. What happens during the solar power installation process?

The Solar power installation process consists of engineered drawing that is submitted for permit approval.  After permit approval and installation, a date is scheduled. Most installations for homes will take 1-2 days. After installation, it will be submitted for a final inspection.  After the inspection is completed your local power company is notified with an interconnection agreement which they will come out and swap out your meter for a bidirectional meter that will be able to monitor the power your solar power system will produce for the power company.  The total installation process takes 4-8 weeks depending on permitting, interconnection agreement and weather.

30. Should I ask for a solar monitoring system for my solar panels?

Yes.  Most solar contractors will not include the monitoring.  You would be advised to ask for it. You can always get your energy output readings from the inverter if it is a string inverter system.   However, you will have to go to the inverter and familiarize yourself with its report settings in order to get your solar energy production readings. It is a microinverter system you will need monitoring or you will just have to rely on the power companies tracking numbers.  If you have a string inverter system by SolarEdge w/ power optimizers you need to have the cellular chip upgrade to your system. Then you will be able to track the energy production from your solar panel system through an app you can download onto your phone. You will be able to see the day to day energy production, weekly, monthly and yearly solar energy output.

31. Do I need to install solar batteries with my solar power system?

In Orlando Florida, you are able to tie the system into the power companies grid nullifying the need for the solar batteries.  You might want to consider a Tesla Powerwall as a backup generator system. Keep in mind when you use a Tesla Powerwall it will not back up your entire system but rather provide power to critical energy sources during a power outage.  Mainly your main loads are what you are backing up. Refrigerator and stove with an outlet for a light and fan. If you wanted to back up for the entire house you would probably need 3 Tesla Powerwalls. I typically do not recommend battery backups where grid access is available.  There are a few reasons for this. First, off I feel a traditional generator is a better power outage backup then solar batteries, because when the power goes out it is usually accompanied by bad weather that will reduce the systems overall production and leave you with intermittent power outages.  Secondly, Solar battery solutions only last 7-10 years, meaning you will have to replace the batteries 3 times during the life of your solar panel systems life, more than doubling the cost of the system. Finally, solar batteries put off a strong magnetic field that I do not like putting near the home.  If you had a shed that was 100 feet from the home then I might put the batteries there. There are some great whole home generators that you can install for the same price that will actually give you enough power to power your entire home for a week.

32. Can the local Homeowners Association (HOA) stop me from installing a solar power system on my building?

It is illegal for an HOA to prevent you from installing solar panels on your home.  Some will have requirements such as they need to face the back of the house but even those are speculative.  Meaning if the performance of the system mandates that the solar panels need to face the front of the house for peak performance then they can not stop you from placing them there.  I do recommend checking with the HOA for any guidelines they request and whenever possible adhere to those requests. In cases when you cannot adhere to their guidelines then your solar company can send them a letter explaining why we must break there suggested guidelines.

34. How will Solar Panels be mounted?

Solar panels will be mounted to a racking system and it is that racking system that will be mounted to the roof.  More specifically to your homes truss system when available. That means no solar panels will be mounted directly to your roof.  This method reduces and potential leaking factors that may arise if the panels were installed directly to the roof.  Ironridge solar mounts are the most durable mounts on the market and graded to withstand 140 mph winds.

For more Questions you should ask your solar company check out our ongoing series:

Questions You Should Ask Your Solar Company – Part 1

Questions You Should Ask Your Solar Company – Part 2

Questions You Should Ask Your Solar Company – Part 3

Questions You Should Ask Your Solar Contractor – Part 4

The 7 Most Important Questions to Ask Your Solar Company – part 1

Solar Energy In Orlando, Florida is on the rise and the 7 most Important Questions You Should Ask Your Orlando Solar Company

1. What are the financial benefits of solar energy?

The biggest financial benefit for solar energy in Orlando, Florida is it will continually lower your kWh rate over time. As your power company raises its rates, by 4% a year on average, you will be insulated from these rate increases. Over the life of the system, your savings can exceed $50,000 over the money you will already spend. The best part about the money you make on solar is that it is in savings of post-tax dollars which means the money you make is not taxable and makes your gross rate profit the same as your net rate profit. For example, if you were to earn this same money in the stock market then those earnings would be taxable under capital gains.

2. What are the environmental benefits of solar energy?

Solar Energy will reduce your carbon footprint. Solar Energy doesn’t need to be drilled, Doesn’t need to be processed at a facility, doesn’t need to be transported and most importantly doesn’t need to be burned. According to a recent article from CNN, they state that solar may be the one variable that can rescue us from global warming. See link in video description below

3. How do I find out how much Strength training for a future military overtraining all about weight rack. I pay for electricity?

You can look at your power bill to determine your active kWh rate, but make sure you factor in many power company charge either increased rates over a designated monthly kWh usage or a premium rate for energy used during peak hours. The average kWh rate including taxes ranges from $.12 to $.16 per kWh in Orlando, Florida.

4. What is net metering?

Net Metering is the agreement in place with power companies that allow you to produce your own energy and sell your excess energy to the power company for energy credits to be used at a later time or date. During the day your solar power system will produce all of the energy you will need for the entire day and then at night, you will use your accumulated credits from the energy you produced during the day. The best part of net metering is that you are able to sell your power to the power company at the retail rate for the energy that you use.

5. How does solar impact my property values?

This is what makes solar energy the best investment in the market. According to Forbes Magazine, you recoup 97% of your investment the day you install the panels on your roof. This is what allows you to convert a variable expense into a profitable asset. Essentially you are converting your power bill into an asset that increases your property value as well as insulating yourself from future power rate hikes.

6. How do solar photovoltaic (PV) solar panels work?

Solar panels generate electricity through the photovoltaic process. This is where the silicon solar panels separate the electrons from the protons. The electrons are then funneled down into the inverter that will convert the dc electricity into ac electricity which is what your home and the grid work off of.

7. Do my solar panels produce power when the sun isn’t shining?

It will generate some electricity but it will be less than when it is clear weather and sunny. Here in Orlando, there is a lot of Sun but there is also a lot of clouds, hence getting a solar power system with SolarEdge power optimizers maximizes your solar panel system energy production. For More Questions you should ask your solar company visit our ongoing series:

Questions you should ask your Solar Company – part 2

Questions you should ask your Solar Company – part 3

For a comprehensive solar buyers guide visit “The Secret Guide to Buying Solar”