If you’re thinking about installing solar and replacing your roof at the same time, one of the first questions you’ll probably have is: How much will it cost, and how will I pay for it?
Between loans, interest rates, monthly payments, and tax credits, financing can feel confusing. But it doesn’t have to be.
At A.M. Sun Solar + Roofing, we help homeowners across San Luis Obispo County understand their options and plan for both projects. Here’s a simple breakdown of what to know.
Why Finance Solar and Roofing Together?
If your roof is getting older, replacing it before installing solar can make sense. Doing both projects at the same time can help you:
- Complete everything in one project
- Avoid removing and reinstalling solar panels later
- Simplify the process
- Start using your solar system sooner
For many homeowners, combining the projects can also make it easier to plan the overall cost.
How Does Financing Work?
Financing lets you pay for your project over time instead of paying the entire cost upfront.
Your payment can depend on things like:
- The total project cost
- The length of the loan
- The interest rate
- Your credit
- Any financing fees
When comparing options, look beyond the monthly payment. It’s important to understand how much you’ll pay over the life of the loan.
Ways to Pay for Solar + Roofing
Cash
Paying cash means you won’t have loan interest or monthly payments. The downside is that you’ll be using a significant amount of your savings upfront.
Solar or Home Improvement Loan
A loan allows you to spread the cost of your project over time with monthly payments. Depending on the financing option, you may be able to include both your roof and solar system.
Compare the interest rate, loan term, fees, monthly payment, and total amount you’ll repay.
Home Equity Loan or HELOC
If you have equity in your home, you may be able to borrow against it.
A home equity loan gives you a set amount of money, while a HELOC works more like a line of credit. Both have their own rates and terms, and your home is used as collateral.
What About Solar Leases and PPAs?
Solar leases and power purchase agreements (PPAs) allow you to use solar without purchasing the system outright.
However, these options generally focus on the solar system and may not include a roof replacement. If you need both, make sure you understand exactly what each option covers.
What About Tax Credits?
Tax credits may help reduce the overall cost of a qualifying solar project.
A federal solar tax credit, when available and when you qualify, generally reduces the federal income tax you owe. It isn’t typically an instant discount on your contractor invoice.
Roofing expenses may be treated differently, and tax rules can change. Talk with a qualified tax professional about how current rules apply to your specific situation.
Don’t Focus Only on the Monthly Payment
A lower monthly payment doesn’t always mean you’ll pay less overall.
For example, a longer loan may lower your monthly payment but increase the total amount you pay over time.
Before choosing a financing option, look at:
- Interest rate
- Loan term
- Total project cost
- Financing fees
- Total amount you’ll repay
- Early payoff terms
Questions to Ask Before You Sign
Before choosing a financing option, make sure you understand:
- Does it cover both the roof and solar?
- What is the total project cost?
- What is the interest rate?
- Are there additional fees?
- What will my monthly payment be?
- How much will I pay in total?
- Can I pay the loan off early?
- When do payments begin?
- Could I qualify for any tax credits?
The Bottom Line
Financing solar and roofing doesn’t have to be complicated. The key is to understand your options and look at the total cost, not just the monthly payment.
If you’re planning to replace your roof and install solar, taking the time to understand your financing options can help you make a plan that fits your home and budget.
We believe homeowners across San Luis Obispo County deserve clear information when making a major home improvement decision. We’re here to help you understand your options and plan your project with confidence.
Book a call with our team here: https://amsunsolar.com/free-solar-proposal/