You will often save a lot of money if you take out a solar loan. 

One crucial factor is that installing solar panels immediately raises the value of your house, whether you do it with a solar loan or not. According to a Zillow survey, solar panels increase a property’s value by an average of 4.1 percent. Solar panels will add a whopping $21,500 to the value of a $500,000 property. 

The overall savings and cash flow from a solar loan will vary depending on how you structure your loan. Let’s examine two instances where a homeowner benefits from obtaining a solar loan: 

High Cash Flow

In many circumstances, the homeowner will be black after the first month. Check out the diagram below that our solar panel calculator produced, for instance. It displays a consumer with a $199 monthly power bill. 

Their power cost will only be $19 after installing solar panels, thanks to a 20-year, no-down solar financing; this leaves them with a net profit of $48. 

In this case, installing solar panels is a no-brainer for a homeowner seeking a quick return on investment!

 

Big Savings

Some homeowners might want to prioritize total financial savings over the panel lifespan. For instance, savings on a solar loan in solar-friendly areas like California and New York can reach $100,000. 

You should look for a solar loan with the shortest feasible contract duration, such as 5 or 8 years, to get better profits like these. Due to this, your monthly loan payments will increase, becoming equivalent to or even more significant than your power bill. 

While you won’t have a positive cash flow while the loan is being paid off, you’ll get almost free power from your solar panels. Additionally, with a 5-year loan and a 25-year warranty on solar panels (although they sometimes live longer), you’ll get more than two decades of free power. 

Better yet, statistics from the government suggest that the cost of power is rising over time, making your free electricity even more valuable than it is right now.

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