Common Financing Options
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Cash Purchase
- Buying the system outright allows homeowners to take full advantage of incentives like federal and state tax credits, reducing the overall cost.
- It eliminates interest payments and ensures immediate ownership.
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Storage Loans
- Solar-Plus-Storage Loans: These are common when purchasing a new solar-plus-storage system, allowing homeowners to finance both components together.
- Storage-Only Loans: Available for retrofitting or adding storage to an existing solar system.
- Loans spread the cost over time, making monthly payments manageable.
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Battery Leases
- Lease agreements involve a monthly fee with the system owned and maintained by a third party.
- This option is advantageous for those who cannot afford upfront costs but may not be eligible for tax credits.
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Property Assessed Clean Energy (PACE) Financing
- Allows homeowners to finance energy-efficient upgrades through property taxes.
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Home Equity Line of Credit (HELOC) or Refinancing
- These involve borrowing against home equity, either through a HELOC or by refinancing the mortgage.
Incentives and Policies
In addition to these financing options, federal and state incentives such as tax credits and rebates can significantly reduce the cost of installing energy storage systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-most-common-financing-options-for-residential-energy-storage-systems/
