Solar Panel Financing

Solar Energy Tax Credits

What is the Federal Solar Tax Credit or the Federal Tax Incentive for Solar?

The Federal Solar Tax Credit is a federal solar panel tax credit you can claim on your income taxes to reduce your federal tax liability. The solar energy tax credit is calculated based on a percentage (30% until 2032) of the total cost of your solar energy system. Currently, the final day to qualify for the 30% Solar Energy Tax Credit is December 31, 2032. After that date the federal tax credit for solar power is slated to drop to 26% in 2033 and 22% in 2034. 

Find out more on the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics.

What are SRECs (Solar Renewable Energy Certificates)?

SRECs or Solar Renewable Energy Certificates are special incentives designed to encourage the adoption of solar energy. SRECs are granted to renewable energy producers in certain states for every 1,000 kilowatt-hours (kWhs) their system contributes to the electric grid. Some utilities or renewable energy aggregators may compensate solar producers for their portion of solar RECs that will be used to meet renewable portfolio standards.

In essence, homeowners and business can be compensated for earning monthly credits for every 1000kwh’s of power produced. For example, a solar homeowner in Washington, D.C. producing 12,000 kWhs of power per year could have earned up to $4,800 by selling their SREC credits in 2022 . Additional information about solar renewable energy credits can be found on the links below. 

Solar Renewable Energy Credits Explained (article)

U.S. Environmental Protection Agency website

Solar Power Loans or Solar Panel Loans

Solar power loans provide solar financing for homeowners to finance their solar installation through residential solar financing companies specifically designed for investments in residential solar. Powur has many Finance Partners who offer various terms and loans for solar installations.

Home Equity Loan or First Mortgage Refinance

A bank loan secured with equity from the house.

Property Assessed Clean Energy (PACE) Loan

This is one of the local government loans for solar panels that is only available in some markets and it is approved based on property value and not on personal credit. The loan stays with the property and ownership transfers to the new homeowner.

Low Interest Energy Efficiency and Renewable Energy Loan

A secured loan for solar systems, typically offered by credit unions or banks with low interest rates.

Low Interest Rate Credit Cards with Favorable Terms

These can be a great option for clients with strong credit who are offered very favorable terms on cards that they can pay off before the terms expire. Some applicants may even qualify for interest free solar panel loans or zero down solar installations.

What about Solar Power Purchase Agreements (PPA Solar)?

With a solar power PPA or solar power purchase agreement, your solar panel system is third-party owned and you pay a fixed amount for each kWh the system produces. These terms are usually for 20+ years.

Can I Lease Solar Panels?

Yes you can lease solar panels! In a solar lease, you rent solar panels owned by a third-party and the third-party pats a fixed monthly rate regardless of what your system produces. Leasing terms are usually for 20+ years.