One important reason is that when you buy a solar panel system – whether through a solar loan or otherwise, you instantly increase the value of your home. A study by Zillow found solar panels on average add 4.1% to propertys value. For a $500,000 home, solar panels will add a cool $21,500 in value.
As for the total savings and cash flow from a solar loan, this depends on how you choose to set your loan up. Lets look at two different cases where a homeowner comes out ahead by taking out a solar loan:
In many cases, the homeowner will come out ahead from Month One. For instance, check out the diagram below generated by our solar panel calculator. It shows a utility bill customer who pays $199/month for electricity.
After purchasing solar panels with a 20-year zero-down solar loan, their utility bill will be just $19, while their loan repayment will be $132 – theyre coming out a net $48 ahead.
In the example above, the homeowner is essentially getting an asset that generates positive returns payday loans in Colorado from Day One, all without spending anything out of pocket. For a homeowner looking for an instant return on investment, installing solar panels in this situation is a no-brainer!
Some homeowners may choose to prioritize overall savings over the lifetime of the panels. Continue reading “How to check your cash flow and returns from a solar loan”