Financing Options and Incentives For Solar Systems
Posted on Oct 24, 2013 by editor
There are several options for homeowners and anyone who wants to install and use an alternative power system. The type of financing of you select will depend on your desired system and financial circumstances.
One option for solar financing Sacramento is an energy lease. This option is for people who want to use a solar system without actually purchasing one. Essentially you lease a solar system which will be installed on your roof. A power purchase agreement typically ranges from 15 to 20 years. The homeowner pays a low monthly rate for the system and reaps the benefits of cheap solar energy. The solar panels are set up by a solar services company, which handles the assessment, permitting, installation and maintenance of the system. A third party financing company will own the system and maintain the system over the life of the lease.
Another way to finance a solar system is to take advantage of the many traditional loans from local banks and credit unions. Loans range from 2.99% - 12.99% interest rate and lengths of terms can vary from 30 days to 12 years. Consult your Sacramento solar expert to see what loan program is right for you.
For those living within the municipality of Sacramento, SMUD (Sacramento Municipal Utility District) offers rebates for varying levels of energy efficiency. The SMUD loan program gives homeowners from $5,000 to up to $30,000 to purchase a new solar system. The payback period starts at 36 months and can extend up to 10-years. Buying solar systems is incredibly affordable. Finally, state law requires that SMUD buy back any electricity that your system re-inserts into the grid so even if you don’t use it, you still benefit from the solar system. SMUD is still offering rebates to install a solar system. Your local Sacramento solar expert will help you determine the amount of rebates.
There are additional incentives: California Solar Initiative (CSI) is another source of financial incentives. The program gives homeowners a rebate when they install solar systems. Homeowners earn cash rebates based on the number of watts the system is expected to general. The rebate is for PG&E customers.
Another beneficial program is the property tax credit program. Each homeowner who installs a solar system can receive a tax credit for the cost of a new solar system installed. A federal program gives homeowners up to 30% in tax credits, for installing a new photovoltaic system and a solar water heater. This credit is given to homeowners on top of any municipal or state programs they may be available for. You should ask your accountant today about how this program could benefit you.
A Sacramento solar system can save thousands on electricity or water heating costs. There are a plethora of options available for homeowners through the various loans, tax incentives, and rebate programs offered to Sacramento and California residents. No matter your circumstances, residents will find professional solar installation companies who can recommend the best options for your home and your needs.