The benefit of investing in a solar panel product is tenfold.
Not only is the consumer securing an eco-friendly green piece of technology that helps to lower carbon emissions, but it is sustainable hardware that should last for generations.
If this was not enough of a selling point, the units of energy or kilowatts can be sent back to the public grid, offering an additional financial incentive for the home or business owner and an opportunity to save on storage space on the panels themselves.
Once the choice has been made to delve deeper into this investment opportunity, the matter of solar panel financing will emerge.
What is the best strategy to adopt? Should homeowners take a similar approach that they did via their mortgage? Is a business in a stronger position to integrate green technology?
Here we will outline the options that are on the table for domestic customers.
The best approach that a client can take when it comes to solar panel financing options is to make an outright purchase. This will mitigate against many of the downfalls that are found with loans and lease agreements, but it comes with the very obvious downside of having to invest a significant sum upfront. Financial experts will only recommend this approach if the client is not steeped in debt and is liquid enough to leverage this opportunity. If a sale has been made or enough savings have been garnered to make an outright purchase a possibility, then this can be an investment that will add value to the property.
One of the best elements about engaging with green energy suppliers is that they will be approved and accredited by the Clean Energy Council. That setting allows for clients to utilise a green loan, an agreement that commonly comes with a low interest rate to ensure that citizens are enticed and motivated to make the eco-friendly switch. For those homes or businesses who don’t enjoy as much upfront liquidity, a green loan is recommended as a quality option for solar panel financing so long as there are no hidden fees involved.
Renting The Product
Much like renting a home or a unit – there is a great deal of upside when it comes to renting a solar panel set. This will be a strategy that offsets many of the large transactions that can occur with other solar panel financing options, still leaving the customer the chance to own the product once they have seen through the extent of the lease. Issues will arise if there is an extensive interest rate that fluctuates as well as locking in the client for a full payment if they decide to move locations.
Securing a Commercial Certificate
One strategy that commercial entities can utilise when it comes to managing their solar panel financing requirements is to look at one of two certificate options present in the market. Although they will need to access a loan or make an outright purchase, these certificates provide an opportunity to offset a healthy portion of the price of doing business month to month. For those companies operating below a 100-kilowatt capacity, they are well served securing a small-scale technology certificate (STC) whilst those above 100 are recommended to secure a large-scale technology certificate (LGC).
Depending how far and wide the client is willing to extend their search, there are alternatives when it comes to solar panel financing options. From some loans that are classified as interest free to including the investment into a mortgage agreement, a power purchase agreement (PPA) or simply accessing a personal loan from a bank or finance enterprise, there are different ways and means of paying for this key project.