The cost of solar panels has been dropping dramatically in the past few years, particularly with China’s massive economy of scale churning out panels at such low cost, making them more affordable than ever before. But, even though solar systems are now more affordable, they’re not exactly cheap.
Luckily, if you want to install solar panels but don’t have a lot of money to spend, you can do it on a budget.
Buy Second-Hand Panels
There are many things that you can do to reduce the cost of your solar panels. First, you should find out if there’s a local solar outfitter in your area that sells used or closeout items for cheap.
Although this may not be available in all areas, it can save you lots of money. But make sure these discounted items are not defective or you could end up wasting your money.
Explore Government Incentives
A lot of people don’t know that they can take advantage of government incentives for installing solar panels for their homes. If you talk to a local solar power installer, they can tell you what incentives are available in your area. These government incentives help to lower the cost of purchase and installation, making them more affordable for everyone.
Use a Lease or Power-Purchase Agreement
This can be an economical way for homeowners with good credit to get solar panels without paying anything upfront. This means that the money you would use for a down payment can go towards your monthly utility bills. Many power-purchase agreements are upwards of 20 years long, making them a long-term investment.
Leasing the solar panels may be another alternative to buying them outright. With this option, you’ll still get the benefit of cleaner energy but won’t have to spend as much. To really save money with a lease or power-purchase agreement, make sure you ask your utility company for any incentives they offer customers.
Ask About Financing
Solar panel installation companies might offer financing options that make panels affordable for anyone who wants to power their home with solar. If you’re buying your panels from a company, ask them if they offer any financing options that will make it easier for you to get solar panels on your home.
You can negotiate with the company to see how much money you save by paying off the loan early or by paying more than the minimum payment each month.
When you’re ready to purchase solar panels, you’ll want to get some quotes from different companies so that you can compare the costs. Make sure that all of your quotes are detailed and come with a breakdown of each item included.
Find out if the rate they’re quoting you is all-inclusive or if there are any additional charges for anything like shipping, installation or permits. You should also ask about the warranty that comes with the panels.
Check Your Credit Score First
Before you agree to any contracts or leasing arrangements, it’s important that you check your credit score so that you can make sure it qualifies for a loan. The last thing you want is to have the option of buying solar panels taken away.
Buy Smaller Panels to Start
If you aren’t sure that you want to spend a lot of money on solar panels, or if this is your first time buying them, you can start small. When you have more money, you can buy a bigger solar panel PV system. This way, you aren’t spending a lot of money on equipment, but you’re still making a dent in your bills.
The time it take for homeowners to break even on their solar panels varies widely and depends on what they spent, what they’re saving on utility bills and what they received in tax incentives. You could enjoy the benefits of solar energy at home and get your investment back in seven years or less.
Feature image: Thomas Oettinger; Image 1: LCEC
