A new Home Energy System including solar panels and a smart home battery is a big home improvement investment. Many people finance it with a loan and many pay cash. Here we take you through the options.
Baker Home Energy offers various low cost financing options, partners and plans to help you save money when you decide it’s time for energy independence and low electric bills. We’ll help you decide whether purchasing for cash or financing fits your lifestyle best.
Whether you choose to pay upfront, mix cash and financing, enter the Baker Home Energy Program, or get a solar loan from our financing partners, Baker will get you energized.
Solar & Home Battery Financing Options: Cash vs. Loans
A cash purchase typically offers the lowest cost per kilowatt hour and is potentially tax deductible.
With a cash purchase, you buy and own the system, along with all the energy it produces. A cash purchase requires the highest upfront cost, but will generally pay for itself more quickly than other options, and provides you with the lowest cost per kilowatt hour. When you purchase your solar system outright, it also allows you to utilize the Investment Tax Credit.
Benefits of purchasing your solar system using cash include:
You own the solar system
Contract value is paid directly to the solar provider
Investment Tax Credit (ITC) is claimed by you
Studies show purchased solar can increase home value
Quicker Return on investment
Provides the lowest monthly costs
Want to go solar and reduce your electric bills without making a big upfront investment?
Many consumers find that financing their solar system makes the best sense because it offers many of the same benefits of a cash purchase, but without the upfront costs.
It’s a great option if you want to own your solar system but don’t have the immediate funds for a cash purchase. Instead of high-cost electric bills from utility companies each month, you’ll have a lower-cost loan payment. Whether you use your own bank or one of our loan partners, we’ll help you every step of the way in obtaining the solar loan that works best for you.
Loan options include:
Self-Financing e.g. HELOC
Solar Loans through Baker’s preferred financing Partners
Benefits of using a loan for your solar include:
You own the solar system
Investment Tax Credit (ITC) is claimed by you
No heavy upfront out-of-pocket expenses
No prepayment penalty on Solar Loans
Some loans are transferrable in the event you decide to move.
Want to go solar and reduce your electric bills without making any big upfront investments? Similar to a lease, a homeowner will pay a monthly fee, but the payment is determined by the anticipated amount of energy generated over the life of the system. Let Baker maintain the solar panels and batteries, while you enjoy the benefits of solar power without worrying about performance variations.
Benefits of joining the Home Energy Program for your energy needs include:
0 upfront costs for installation
Predictable monthly payments
Maintenance & worry free
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Understanding the Benefits of Solar Financing
Solar financing options provide homeowners with the flexibility to invest in renewable energy without the burden of a significant upfront cost. By understanding these benefits, customers can make informed decisions that align with their financial goals and energy needs.
For instance, financing allows homeowners to spread the cost of their solar systems over time, making it more manageable. Additionally, many financing options come with incentives such as tax credits and rebates, which can further reduce the overall investment, enhancing the appeal of solar energy solutions.
Comparing Cash Purchases vs. Financing Options
When deciding between a cash purchase and financing options, it's essential to weigh the pros and cons of each approach. Cash purchases offer immediate ownership of the solar system, leading to quicker returns on investment, while financing options allow for lower initial costs.
For example, a cash purchase typically results in lower overall costs due to the absence of interest payments, but financing can provide immediate access to solar energy benefits without the need for a large upfront payment. Homeowners should consider their financial situation and long-term energy goals when making this decision.
Exploring Government Incentives for Solar Investments
Government incentives play a crucial role in making solar investments more accessible and affordable for homeowners. These incentives can include tax credits, rebates, and grants that significantly lower the overall cost of solar energy systems.
For instance, the Federal Investment Tax Credit (ITC) allows homeowners to deduct a percentage of their solar installation costs from their federal taxes. Such incentives not only encourage the adoption of solar energy but also enhance the financial viability of solar projects, making them an attractive option for many households.
Frequently Asked Questions About Solar Financing
Understanding solar financing can be daunting for many homeowners, which is why addressing common questions can help clarify the process. FAQs often cover topics such as the differences between leasing and purchasing, how to qualify for loans, and the impact of financing on property value.
For example, potential customers frequently ask whether financing affects their credit score. While applying for loans may result in a credit inquiry, responsible management of financing options can ultimately enhance creditworthiness. Providing clear answers to these questions can empower homeowners to make confident decisions regarding their solar investments.
california solar financing options, battery financing, solar companies in escondido
Understanding the Benefits of Solar Financing
Solar financing options provide homeowners with the flexibility to invest in renewable energy without the burden of a significant upfront cost. By understanding these benefits, customers can make informed decisions that align with their financial goals and energy needs.
For instance, financing allows homeowners to spread the cost of their solar systems over time, making it more manageable. Additionally, many financing options come with incentives such as tax credits and rebates, which can further reduce the overall investment, enhancing the appeal of solar energy solutions.
Comparing Cash Purchases vs. Financing Options
When deciding between a cash purchase and financing options, it's essential to weigh the pros and cons of each approach. Cash purchases offer immediate ownership of the solar system, leading to quicker returns on investment, while financing options allow for lower initial costs.
For example, a cash purchase typically results in lower overall costs due to the absence of interest payments, but financing can provide immediate access to solar energy benefits without the need for a large upfront payment. Homeowners should consider their financial situation and long-term energy goals when making this decision.
Exploring Government Incentives for Solar Investments
Government incentives play a crucial role in making solar investments more accessible and affordable for homeowners. These incentives can include tax credits, rebates, and grants that significantly lower the overall cost of solar energy systems.
For instance, the Federal Investment Tax Credit (ITC) allows homeowners to deduct a percentage of their solar installation costs from their federal taxes. Such incentives not only encourage the adoption of solar energy but also enhance the financial viability of solar projects, making them an attractive option for many households.
Frequently Asked Questions About Solar Financing
Understanding solar financing can be daunting for many homeowners, which is why addressing common questions can help clarify the process. FAQs often cover topics such as the differences between leasing and purchasing, how to qualify for loans, and the impact of financing on property value.
For example, potential customers frequently ask whether financing affects their credit score. While applying for loans may result in a credit inquiry, responsible management of financing options can ultimately enhance creditworthiness. Providing clear answers to these questions can empower homeowners to make confident decisions regarding their solar investments.
