The Benefits of Going Solar
Adding solar panels to your home may mean never having to pay an electric bill again. This can save you a lot of money in the long run. Adding solar panels can increase the property value of your home. Also, the Internal Revenue Service (IRS) gives tax credits to households that go solar. Until the end of 2020 the federal government will give you a 26% tax credit for the installation of a solar system. Leaving a carbon footprint for future generations to benefit from is a huge benefit.
The Cost of Going Solar
The benefits may outweigh the cost of adding solar panels to your home. However, you still have to pay for it upfront. Depending on the size of your roof going solar can cost between $8,000 to over $30,000. This depends on the type of solar system, the brand and the installation costs. There are three types of systems:
1) The gridtie system- which connects to your utility company.
2) The off-grid system.
3) The grid-tie system with a battery backup- which is the most expensive.
Hawaii Solar Financing For Going Solar
If you can afford to pay for the cost of adding solar panels upfront and wait for your tax credit that’s great. There are a few ways you can finance your solar system if you find it necessary to do so.
1) A Personal Home Improvement Loan:
This type of loan offers a fixed interest rate and fixed monthly payments over the life of the loan.
2) Home Equity Loan:
If you have equity in your home that you can borrow against, you can get a home equity loan or a home equity line of credit (HELOC.)
3) FHA and Fannie Mae Loans:
If you purchase your home with an FHA loan, the bank can include adding the solar system into your mortgage loan.
Solar financing is growing everyday. Here is a more in-depth article from BankRate about going solar and Hawaii solar financing: Going Solar and Solar Financing Options