In San Luis Obispo County, more homeowners are turning to solar energy and roofing upgrades to enhance their homes’ value and efficiency. These investments not only improve your property’s appeal but also offer significant long-term savings. Let’s explore the financing options available for solar and roofing projects.
Why Invest in Solar Energy?
Solar energy is a smart investment that increases your home’s value and reduces electricity costs. Solar panel systems typically last over 25 years and can offset most or all of your monthly electricity bill. For example, if you pay around $150 per month for electricity, you could spend over $65,000 on electricity in the next 25 years. By investing in solar, you can avoid paying a large portion of this expenditure.
Solar Financing Options
Before installing solar panels, it’s important to consider all your financing options to find the best fit for your needs. Here are the main ways to finance your solar system:
1. Cash Purchase
Paying for your solar panel system upfront with cash maximizes your savings. You won’t incur additional interest, and your electricity costs are covered for the next 25 years. As an investment, solar has a high tax free return through the savings it provides. Plus that savings only increases as electricity costs increase. However, this option requires having sufficient capital available, which isn’t necessary to start taking advantage of the savings a solar system offers.
2. Solar Loans
If paying upfront isn’t feasible, at this current time, solar loans allow you to finance your system over time. Similar to a mortgage or car loan, solar loans involve fixed monthly payments over a 5 to 25 year term. This option still provides you the tax credits and enables you to own your system outright by the end of the loan term while still enjoying significant savings.
3. Solar Leases and Power Purchase Agreements (PPAs)
With solar leases and PPAs, you only pay for the electricity generated by the solar panels rather than the panels themselves. Although this can reduce your upfront costs, you won’t own the system at the end of the agreement. This option offers a greater savings than it costs but can be the best solution if you’re not eligible for tax incentives or prefer lower initial costs.
Roofing Financing Options
Upgrading your roof is another valuable investment that can enhance your home’s safety, aesthetics, and energy efficiency. Here are some common roofing financing options:
1. Home Equity Loans
Using a home equity loan for your roofing project allows you to leverage your home’s equity. These loans typically offer lower interest rates compared to personal loans, making them an attractive option for financing large projects.
2. Personal Loans
Personal loans provide a straightforward financing option without requiring home equity. While interest rates may be higher, this option offers flexibility and quick access to funds for your roofing upgrade.
3. Financing Through Roofing Contractors
Many roofing contractors, including A.M. Sun Solar & Roofing, offer third party financing plans to help you manage the cost of your project. These plans can include low-interest rates and flexible repayment terms, making it easier to afford the necessary upgrades.
Tax Benefits and Rebates for Solar Panels
Various rebates and incentives can help offset the cost of solar panels. The federal solar tax credit, known as the Investment Tax Credit (ITC), allows you to deduct 30% of the cost of your solar system from your federal income taxes. This credit is available until 2033, making it a valuable incentive for homeowners. Additionally, state and local incentives may be available to further reduce costs.
Investing in solar energy and roofing upgrades offers significant benefits, from reducing electricity costs to enhancing your home’s value. By choosing the right financing option and working with a trusted local provider like A.M. Sun Solar & Roofing, you can make these upgrades more affordable and effective. Contact us today to start your journey towards a more efficient and valuable home in San Luis Obispo County.
More About A.M. Sun Solar + Roofing
A.M. Sun Solar + Roofing is the local leader in custom solar and roofing installations on the Central Coast. For over two decades, A.M. Sun Solar + Roofing has provided high-quality, cost-efficient solutions to residences and small businesses in San Luis Obispo, Monterey, Kern, Fresno, and Santa Barbara counties.
With a wide variety of financing solutions available, affordable pricing, and complete installations from permit to interconnection, A.M. Sun Solar + Roofing is the go-to local solar and roofing company on the Central Coast.
Connect with us today at hello@amsunsolar.com, (805) 772-6786, or fill out the form below to get a FREE on-site consultation with one of our friendly solar & roofing experts.