If you’re worried about the seemingly-inexorable rise of your energy bills but you can’t quite manage the upfront costs of installing a solar power system, then one avenue for you may be buying your system on finance.
You may also be averse to taking on a loan, especially if you’re already paying a mortgage and a credit card bill, as well as all your other monthly expenses.
But stop and think for a moment – if you’re buying a solar power system on finance obviously you’ll have to pay it back every month, but that system will be saving, and possibly even earning, money every month!
Talk to a local installer about finance options
The best people to talk to about finance for a solar power system might not be the ones at your bank! Very often, personal loans for home improvements have high interest rates – up to 14% in some cases – so over five years you could pay more than $4,000 on a $10,000 loan.
Many local solar installation companies, however, work with finance companies that specialise in green home improvements and can offer attractive terms and rates of interest – possibly around 6%, which means just $1,500 or so in interest over five years (on the $10,000 loan).
Helping people to help the environment
After all, if the high cost of a bank loan is putting you off, then it makes sense to look for an alternative option that benefits everyone – you, the installation company and the lender. The $10,000 loan used as an example involves a monthly repayment of $194, compared to $235 per month with the bank loan.
This saving is significant in itself, of course, but what you mustn’t forget is that your electricity bills will suddenly become a lot smaller each month! You may even be able to sell excess electricity back to the grid, which could net you a small profit and once you’ve paid off your loan, you’ll be in the money. Maybe not a huge amount, but you certainly won’t be worrying about your energy bills any more!
