Electricity

Going Solar with Less-Than-Perfect Credit

Investing in solar panels is a wise financial decision for you, your family, and your community. Many solar panels have a guaranteed lifespan of 25 years and, on average, pay for themselves with energy savings in one third of that time.  It seems like it is the ultimate solution for families who are looking to make ends meet. However, many homeowners hesitate to make the switch to solar because they are concerned about not being eligible for affordable financing options. Is it possible to buy solar panels with a lower credit score?

Personal and Government Loans for Solar 

If you have a credit score of 580 or above, you can qualify for some forms of personal loans through local financial institutions. Shopping around for personal loans tailored towards those with less-than-ideal credit is a good first step. You might also consider looking for government funding to help buy your solar panels. 

One of the best government funded loans available for customers with low credit scores is a Property Assessed Clean Energy (PACE) loan. The PACE financing program was founded to encourage clean energy usage. A credit score is not required for eligibility, making it the preferred option for California homeowners with lower credit scores. For detailed information about this program, read our blog here

The Federal Housing Administration, better known as the FHA, has a program called “PowerSaver.” This program allows qualified FHA loan applicants to get a low-cost loan to help homeowners install energy-saving upgrades to their homes. According to their website, the “FHA PowerSaver Loan offers up to $25,000 for qualified FHA borrowers with equity in their homes. The loan can be used to install … solar panels … and other energy-saving improvements.” This could be a great option for many individuals who fall on the lower end of the credit score spectrum.

Solar Leasing – An Alternative to Owning

Solar leasing allows you to rent the solar panels installed on your home instead of owning them outright. According to energy.gov, “Solar leases and PPAs (power purchase agreements) allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated… allowing them to have lower electricity bills without monthly loan payments.” 

While leasing is an alternative to ownership, it is often not the best financial choice for customers looking to go solar. Customers can save much more money in the long run by utilizing other options like the loan programs mentioned above. 

Low Credit Score – Big Environmental Impact

By taking advantage of the many government and local programs available, you can make your dream of going solar a reality. Not only will going solar benefit the environment in the long run, but the utility bill savings will also benefit your bank account. 

At Synergy Power, we believe going solar should be an easy process. When you call us, you’ll have a dedicated sales representative to assist you with determining which financial options are best for you and your situation as you make your move to go solar. Call us today to schedule an appointment and discuss your options. 

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