If you’re looking for alternatives to solar loans with dealer fees, consider the following options:
Alternatives to Solar Loans
1. Home Equity Loans and Lines of Credit (HELOCs)
- Home Equity Loans: These are secured by the equity in your home, offering favorable fixed interest rates and tax-deductible interest. They require a good credit score and substantial home equity.
- HELOCs: Provide a flexible line of credit with low interest rates. They allow borrowing as needed, but require home equity and often stricter credit score requirements.
2. Solar Leases and Power Purchase Agreements (PPAs)
- Solar Leases: You rent the solar panel system from a solar company with fixed monthly payments, but you do not own the system and are not eligible for tax credits.
- PPAs: You purchase the electricity generated by the system at a set rate per kWh, which may fluctuate based on production levels. Again, you do not own the system and cannot claim tax incentives.
3. Government-Backed Programs
- FHA Title I Loans: Government-backed loans can be used for solar panel installations, offering competitive interest rates and availability for lower credit scores.
- FHA PowerSaver Loans: Provide financing for energy efficiency improvements, including solar panels.
- Fannie Mae HomeStyle Energy Mortgage: Offers financing for energy improvements, including solar systems, as part of a mortgage.
4. Property-Assessed Clean Energy (PACE) Financing
PACE loans allow homeowners to finance energy-related projects, such as solar panels, through property tax assessments. However, these can lead to increased property taxes and have some controversy surrounding them.
5. Bridge Loans and Specialized Credit Union Loans
Some credit unions offer bridge loans or specialized solar loans with competitive terms and lower or no origination fees, such as those provided by Clean Energy Credit Union and Community 1st Credit Union.
Each of these alternatives has its own set of pros and cons, so it’s important to assess which one best fits your financial situation and solar goals.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-alternatives-to-solar-loans-with-dealer-fees/
