8 Great Ways Your Clients Can Finance Their Residential Solar Panels in 2023

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February 7, 2023 | By RGR Marketing Blog

What to Tell Clients — Financing Residential Solar Panels in 2023

Cost has long been one of the biggest hurdles homeowners faced when deciding on adding solar panels to their homes. And while the cost of solar has gone down dramatically since the technology was first made available to the public, in 2022, inflation and supply chain woes caused solar prices to rise again for the first time in a long while, further impacting buyer decisions.

But 2023 will hopefully be a return to solar norms now that inflation has been calmed and supply chain issues mostly resolved. Also making solar much more approachable this year is the fact that homeowners now have more financing options to choose from than ever. Today, homeowners can choose a solar financing solution that allows them to enjoy all the benefits of solar at a price that fits their budgets.

When discussing cost with your prospects in 2023, here are eight great financing options to share with them, so they can choose the best one for them.

#1: Solar Loans

Solar loans are available from many third-party lenders. These loans work just like any other standard loan, but one of the best things about working with one of these solar financing companies is that they can create flexible loan payment plans for just about any type of customer, including those who want to pay off their loans quickly, have less than perfect credit scores, or have no money saved to use as a down payment on their loan. Because of this appeal, solar loans are attractive and feasible to a wide audience.

#2: Combo Solar Loans

Combo solar loans are gaining in popularity among residential solar buyers. This type of loan is comprised of two parts – a bridge loan and a net solar term loan. Here’s how it works:

If your client purchases their solar system using a loan in 2023, then they will receive a 30% tax credit towards that year’s income taxes. A combo loan typically gives the borrower 12 to 18 months to pay off 30% of the loan’s principal. The 30% tax credit can be applied towards paying off the first portion of the loan. With that requirement satisfied, the remaining 70% will then be financed into a net solar term loan which usually carries a lower interest rate.

#3: PACE Financing

The Property Assessed Clean Energy (PACE) program provides low interest financing that can help homeowners reduce the high, up-front costs that come with switching to solar. PACE pays for 100% of a project’s costs and is then repaid for up to 30 years via an assessment that gets added to the property’s tax bill. To be eligible, instead of a credit check being performed, homeowners must have at least 10% equity in their homes. PACE may not be available in all states, but it is available in most.

#4: Cash-Out Refinance

A homeowner can also use the money they get when doing a cash-out refinance to pay for their solar system. This is essentially a new mortgage that’s larger than their current mortgage. The new loan pays off the old loan and the difference can then be used to purchase their solar panels. This is a good option if current mortgage rates are lower than what the homeowner was previously paying. It is also important to remind your prospect that there will be closing costs associated with this type of financing and they can range from 2% to 5% of the mortgage’s cost.

#5: Home Equity Loan

If the homeowner has equity in their home, then they can borrow against it using a home equity loan to pay for their solar system. Home equity loans are popular among solar buyers because they tend to have lower rates and longer repayment terms than unsecured solar loans. These loans are more forgiving because the homeowner is putting up their home as collateral, and this lowers the risk for the lender.

#6: Home Equity Line of Credit (HELOC)

A HELOC is another financing option where the home is used as collateral, but unlike with a home equity loan, this type allows the homeowner to draw on the funds as they’re needed. A HELOC works more like a credit card, where once it is paid off the funds can be borrowed again and again. But HELOCs aren’t without their risks as unlike personal and home equity loans, they tend to have variable rates.

#7: Solar Leasing

If your client wants solar but they can’t afford a large upfront payment or they’re ineligible for federal and state tax credits for some reason, then they can still get solar at a price they can afford by leasing it. With solar leasing, the homeowner doesn’t need to pay anything upfront. Instead, they rent the panels by making a monthly lease payment. When leasing solar panels, the homeowner isn’t responsible for maintaining them, but they also don’t officially own them either, and this can make it a little more difficult to sell their home should they have plans to do so.

#8: Solar Power Purchase Agreement (PPA)

Solar PPAs are unique in that they allow homeowners to host solar energy systems, which remain owned by solar companies, and purchase back the electricity generated. A PPA a financial agreement where a solar developer arranges the design, permitting, financing, and installation of a solar system on the homeowner’s property at little to no upfront cost. The homeowner then agrees to purchase the power generated by the system at a set price per kilowatt-hour of electricity produced over the life of the system. This benefits the homeowner because the price of solar electricity is often lower than their local utility’s rate.

RGR Marketing Has Solar Leads for Every Type of Financing Option

Inbound solar leads are like a box of chocolates, you never know what you’re going to get. But when you purchase your solar leads from RGR Marketing, you know exactly what you’re getting because you tell us who your target customer is, and we build your list off that information.

At RGR Marketing, our leads consist of homeowners who have shown recent increased interest in solar. These leads have already done a lot of their own research and they are on the brink of making their purchasing decision. All our solar leads are also verified for accuracy and scrubbed to remove any duplicates, incomplete profiles, or invalid data.

With 20-plus years of experience serving the solar industry. RGR Marketing’s lead gen experts understand your industry and know what makes for a high-quality lead. Purchase a list of exclusive solar leads from us and find out for yourself how our commitment to providing our clients with better quality leads can impact your sales in 2023.

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What to Tell Clients — Financing Residential Solar Panels in 2023

#1: Solar Loans

#2: Combo Solar Loans

#3: PACE Financing

#4: Cash-Out Refinance

#5: Home Equity Loan

#6: Home Equity Line of Credit (HELOC)

#7: Solar Leasing

#8: Solar Power Purchase Agreement (PPA)

RGR Marketing Has Solar Leads for Every Type of Financing Option

Start making more
money today!

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What to Tell Clients — Financing Residential Solar Panels in 2023

#1: Solar Loans

#2: Combo Solar Loans

#3: PACE Financing

#4: Cash-Out Refinance

#5: Home Equity Loan

#6: Home Equity Line of Credit (HELOC)

#7: Solar Leasing

#8: Solar Power Purchase Agreement (PPA)

RGR Marketing Has Solar Leads for Every Type of Financing Option

Start making more money today!

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