All About Solar Financing in FL

All About Solar Financing: Making it Affordable in FL

Let me guess... you've thought about going solar but feeling a bit overwhelmed by the costs? You’re not alone. As a solar expert who’s seen the landscape evolve in our sunny state, I’m here to help explain solar financing for you. It’s not as troublesome as it seems, and with the right approach, solar energy can be surprisingly affordable.

Understanding the Basics of Solar Financing

What is Solar Financing?

Solar financing is like the bridge that connects your solar ideas to reality. It’s the method to cover the upfront costs of solar panels and installation through various payment plans or agreements. However, if you get any important information out of this at all, solar financing is not to be confused with traditional debts. 

Why Consider Solar Financing?

Think of solar financing as an investment in your home’s future. Sure, there’s an upfront cost, but the long-term savings on your electricity bills can be substantial. Plus, you’re doing your bit for the planet!

Types of Solar Financing Available in Florida

Solar Loans

Solar loans are a popular choice. They work just like a car loan or a mortgage. You borrow the money needed for the installation and pay it back over time. The best part? The interest rates are often quite competitive.

Pros: Fully Transferable, Low-Interest rates between 2-8% APR; Easy Approval Process; Fixed Rate

Cons: High Finance Fees for lower interest rates between 10-30% added on total cost of loan separate from interest rate; solar loans ask that you put your FTC (Federal Tax Credit) as a down payment within the first 16–18 months, If you decide not to your payments will re-amortize typically much higher than current electric rates. 

Solar Leases

Leasing is another option where you essentially rent the solar system. The company owns the panels, and you pay a fixed monthly fee. It’s a hassle-free way to get started, though you won’t own the system outright.

Pros: Low Liability compared to traditional ownership leasing companies place their own insurance to cover natural disaster damage or other similar incidents; lowest payments due to low to no finance fees; best for people that do not qualify for tax credit like lower income, social security earner, and retired folk; Effortless to transfer to new ownership, good for short-term homeowners; Typically have fixed rate option. 

Cons: You do not own the system, and therefore you do not get the ownership benefits like increased home equity and 30% federal tax credit; Yearly escalation structures on lease payments that occur annually such a 1,2,3% yearly increases on base payments (must evaluate options) 

Power Purchase Agreements (PPAs)

PPAs are interesting. You agree to purchase the power generated by the solar panels at a set kWh rate, which is usually lower than the utility rate. 

Cons: Not Available in FL yet :(

Cash Purchases

If you have the means, paying cash upfront can be the most straightforward route. No interest, no monthly payments, just pure solar bliss.

Pros: After paying cash, you should now be energy-independent, meaning no solar bill or electric bill. All ownership benefits, including home equity increase and tax credits 
Cons: There's a ROI period of 7–10 years, not good for older people, or short-term homeowners. 

Solar Incentives and Rebates

Federal Solar Investment Tax Credit (ITC)

The ITC is a game-changer. It allows you to deduct a significant percentage (30%) of your solar system’s cost from your federal taxes. The government is helping you big time to go solar, don't waste your chance!

State and Local Incentives

Florida has some sweet local incentives too. From rebates to property tax exemptions, and net metering programs, these can further reduce your overall costs. It’s worth doing a little homework to see what’s available in your area.

Evaluating Your Solar Financing Options

Assessing Your Financial Situation

Every homeowner’s situation is unique. Consider your long-term financial goals and current budget. Remember, solar is a long-term investment, and the savings accumulate over time.

Understanding the Impact on Home Value

Installing solar panels can increase your home’s value (between 4%-5%). It’s an attractive feature for future buyers who love the idea of lower energy bills. I’ve seen homes with solar panels sell faster and for a better price, along with significant market research to back it up.

Working with Solar Financing Providers

Choosing a Reliable Financing Partner

Selecting the right financing partner is crucial. Look for companies with a solid track record and transparent terms. Don’t hesitate to ask for references or case studies. Do proper research on available finance companies and any terms and conditions that may stand out. 

What to Expect During the Process

The process is usually straightforward. Once you choose a financing option, the provider will guide you through the application, approval, and installation. It’s a partnership, and good communication is key.

Solar financing can make your transition to solar energy smooth and affordable. With various options available, there’s likely a solution that fits your needs and budget. As someone who’s seen many Florida homes make the switch, I can vouch for the financial and environmental benefits of going solar. Ready to take the next step? Click the button below to get your own customized quote!