image-asset (1)

Going Green: How to Finance Solar Panels in Los Angeles for Your Home

Are you struggling with massive utility bills? Wondering how you can keep your family afloat in an age of rising costs, and rising temperatures?

Well, you are not alone.

Energy costs and average temperatures are on the rise all over California. Many homeowners in Los Angeles are deciding to go green and make the smart switch to solar energy.

Solar power comes with tons of great benefits, both for the environment and for your wallet. Going solar is a great way to help the heating planet while saving thousands on energy bills in the long run. Plus, the cost of installing solar panels in Los Angeles is much lower than you might realize.

Want to make this affordable switch? This detailed breakdown makes it easy to start the process:

Understanding the Major Tax Incentives of Going Solar

One of the biggest advantages of getting solar panels in Southern California is the major tax credits that come with making the switch to solar.

If you install your system before the end of 2021, you could see massive savings on your federal and state taxes, thanks to The Solar Investment Tax Credit (ITC), created in 2006.

Solar Investment Tax Credits offer homeowners a dollar-for-dollar reduction in their federal and state income taxes. For example, when you claim a $1,000 federal tax credit, the amount you owe to the government is reduced by $1,000. Those are some major savings!

Also, homeowners could get tax rebates that cover many of the costs of solar panel installation. These include, but are not limited to, site preparation, assembly fees, inspection costs, any sales taxes, and the installation of the system itself. Claiming these tax credits could save you almost $5,000 on your solar panel system installation costs, on average.

For more questions about the ITC, download the U.S. Department of Energy’s Guide to Federal Tax Credit for Solar Photovoltaics.

Installing Solar Panels in Los Angeles With a One-Time Cash Payment

Purchasing your own solar panel system comes with big upfront costs. But, it also comes with the shortest Return on Investment (ROI), and the ability to own your very own system.

Owning your own solar panel system is the easiest purchasing option. It can mean you pay almost nothing for your monthly electrical costs. This could save your family thousands of dollars a year.

The average cost of installing a solar panel system completely out-of-pocket is around $18,000. But with that cost comes virtually free energy for life.

Even if you decide to go the cash payment route, it is still wise to hire professionals to install your home system. The dangers and costs of installing solar panels could be way too extreme for a DIY project.

$0 Upfront Solar Leasing

Paying out-of-pocket for a solar panel system can get expensive. If your family is unable to afford a one-time payment, there are still plenty of zero-down financing options. One of these, called a solar lease, can help to mitigate the cost of installing solar panels in Los Angeles.

With solar leasing, you enter into an agreement with a leasing company for the solar panel system. This means the company you lease from owns and maintains your system, in exchange for you paying a fixed monthly “rent.”

In this type of agreement, the leasing company would receive all tax cuts, rebates, and other solar incentives. But, your electrical costs could be anywhere from 10%-30% lower than a traditional energy bill. That means major savings for your family, plus free installation of your system.

Power Purchasing Agreements (PPAs)

Another zero-down solar panel system financing option is the Power Purchasing Agreement (PPA). This type of agreement is like a solar lease. The PPA provider owns and maintains your system, while you pay a low monthly cost.

The major difference between a PPA and solar lease is the way your monthly costs are calculated. With a PPA, you agree to pay a set per-kWh rate for the amount of energy generated by your system, instead of the fixed monthly “rent” you would pay with a solar lease.

Much like a solar lease, your PPA provider would receive all tax benefits. Still, you could see energy costs that are 20%-30% lower than a traditional energy bill. Again, that is with no upfront installation costs.

Learn more about the differences between solar leases vs. solar PPAs. This way you can determine the perfect fit for your family.

Financing Your System With a Solar Loan

The fourth option to pay for the costs of installing solar panels in Los Angeles is the solar loan. With a solar loan, you borrow money from a third-party lender to pay for your system installation. Then you pay back the loan plus interest in monthly installments.

If you use a solar loan to buy your solar panels, you become the sole owner of your system. Much like a cash purchase, this means you get all the tax benefits and incentives. This also brings your monthly energy costs down to almost nothing.

Plenty of solar loans come with a $0-down lending option, though monthly payment installments are still required. Your monthly payment amount is calculated based on the costs of your system, your interest rate, and the type of loan you choose.

Now Is the Time to Save

It is a critical moment, both for the planet and your pocketbook, to go green and make the switch to solar energy.

Luckily, installing solar panels in Los Angeles is easy and affordable. There are plenty of $0-down options. In every case, monthly payments can be up to 30% lower than your current utility bill.

Ready to get started?

Contact us to begin the process of making the switch today. The sooner you go solar, the sooner you will start seeing major savings. Your wallet, and the planet, will be glad you did.

Add a Comment

Your email address will not be published. Required fields are marked *