Questions you should ask your Solar Company – Part 3
16. Which is better – solar Energy loans or solar Energy leases?
Increased options available for solar energy loans have made them the optimal choice over a solar lease. Two distinct differences apply to solar energy financing, first you will receive a 30% federal tax credit and second it will increase the value of your home. Also, solar financing options now are available as low as 2.99% – 5.99%. In Florida, Leasing a solar panel system is illegal and you have to tie the solar energy system to the electric companies electrical grid. Leasing options are not as favorable because of the terms and that you do not receive tax credits or the increased value of your home. However, when leasing a solar panel system the leasing company is responsible for all of the maintenance of the system while when purchasing the homeowner is. Many solar companies will also include maintenance of the system but you will have to ask them to include it in most cases.
17. What is the difference between secured solar loans and unsecured solar loans?
A secured solar loan would usually entail an equity position on the home where an unsecured solar loan would operate more as straight credit. The advantages of a secured solar loan would be getting to write off the interest paid from the loan as well as getting a low rate without additional financing fees. The advantage of the unsecured solar loans is that there is no additional equity position/lean put on the home. There are also very attractive low rates available but you will usually have to pay upfront financing charges to get them
18. How do I choose the best solar loan?
To get the best solar loan you have to compare the total cost of the loan. Most people make the mistake of looking at the price of the solar panel system over factoring in the monthly rate and the term on the loan. So when you look at the actual total of the loan it will calculate the total amount of money you will pay for the solar energy system including the interest. To figure out the total cost of the loan you need to multiply the monthly payment by the number of payments(term) of the solar loan. That will give you your true system cost and allow you to compare your best deal. Most Orlando Solar Companies will try to show you a lower cost of the system but have a higher monthly payment then a more expensive system because they are charging you a higher interest rate. To get a lower interest rate the financing company will charge an additional financing charge which will increase the sticker price of the solar panel system. However, because of the lower interest rate, your actual total cost of the system will be less. This is important to understand and to get more information on this and other sales practices used by solar companies you can read “The Secret Guide to Buying Solar”.
19. Can I afford to go solar?
The better question is can you afford not to… The price of solar is now very attractive with the lowest rates ever (70% less than in 2009) combined with the current 30% tax credit and low financing options it is usually at least $50 a month cheaper than paying the power company and as time goes by the amount you save only increases. Consumer Reports came out in 2016 and said there has never been a better time to go solar and that remains to be true.
20. Is my roof suitable for solar panels?
If your roof is less than 10 years old your roof is probably a good fit for a solar panel system. The best pitch that works for solar is 30 – 45% which includes over 90% of home roof pitches. Solar Energy will work with other pitches but you might sacrifice some efficiency in the process.
21. What size should the solar energy system I get?
The average system size that is purchased in the US is a 7KW solar power system. However, this differs from what size system you need. To determine the actual size that is needed you will need to know your monthly average kWh. In Orlando, Florida if you have $190 a month power bill you would require a 10KW solar panel system to produce enough energy to offset your electric power bill. Emerald Sun Energy is an Orlando Solar Company that services the entire central Florida region Including Daytona, Orlando, Melbourne, Tampa, Vero, Sebation, Kissimmee, Lake County, Seminal County, Brevard County, Polk County and everywhere in between.
For additional Questions you should ask your solar company please see related posts: