An average home in Florida needs a solar system that can provide approximately 5kw of power. Such a solar energy system will cost you from $ 11,000 to $ 15,000 to buy and install. The equipment itself may come to $ 13,000.
Ten grand is too much money to come out of the pocket, even with the available federal and state tax incentives. One of the popular ways of financing this expense is through a third-party solar power purchase agreement.
Under such an agreement, the solar power company provides the equipment and installs it at no cost. However, they sell the power to you at a subsidized rate for several years. After that, the agreement is extended, brought to an end, or the equipment is sold to you.
State law in Florida classifies third-party solar vendors as public utility companies. It subjects them to rules that would not ordinarily apply to them. The effect is the same as if such agreements were outlawed.
Luckily, Solar loans Florida is an option that will help you purchase your solar power system. For further assistance, get in touch with 1 Stop Solar.
Solar Loans Florida
Solar loans are ideal for solar panel financing in Florida if you cannot afford to pay upfront. The loans are taken to purchase and install solar units and are a sort of home improvement loan. Therefore, the payment structures, terms, and rates applicable to home improvement loans are also available to solar loans.
When you buy solar panels using a loan, you immediately save on your utility bills. You can use these savings to make your monthly loan repayments.
Solar loans and taxes
Many solar loans are structured to let you take advantage of the 26 % tax credit the government permits. Talk to your loan provider to set up your loan repayments in the most effective way possible.
Further, the loan will not affect the 100% tax exemption on purchasing renewable energy devices. The only way the tax credit and exemption affect your solar loan is by reducing your liability.
Home secured solar loans are tax-deductible as solar installations are considered capital projects intended to enhance the property’s value.
Features of solar loans Florida
Solar panel retailers often provide solar loans at the point of sale secured by the solar panels. That gives the retailer the right to repossess the panels if you default.
Your home secures R PACE loans. In this case, the solar loan is tacked on to your home loan, and you can repay it over a 10 to 20 year period. R PACE loans are tax-deductible.
Green mortgages allow you to take a second loan on your home to finance your solar panels. The loan amount is based on the value of your home after installing the solar system.
Unsecured personal loans free your assets from repossession upon default but come with a higher interest. Also, unsecured loans are not tax-deductible. They should be the last option.
A solar loan provider will always be ready to advise you on the loan that best suits your circumstances and will cost you the least. Contact us at Stop Solar for solar panel financing in Florida.