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Jul 21 2018
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5 Common Ways to Finance Solar and Storage Systems

By Buy Solar Panels No Comments

Acquiring solar panels and a solar storage system for your home, and transferring to solar power can be expensive – it can add up to tens of thousands of dollars. Going solar is a good investment and it does pay off in the long run, but the first purchase of a solar system can be quite costly.

Many people are not able to make that purchase upfront and in cash, which can deter them from buying it in the first place.

To help you make that first, serious step towards going solar, making a great investment for your future, and increasing the value of your home, we have researched some of the best financing options for your solar and storage systems purchase.

The 5 traditional ways to finance solar can be broken up into two categories: Loans (you own it) and Leases (third-party ownership).

If you prefer not to spend the upfront money to install your solar panel system, solar loans are an excellent option for you. They allow you to finance the entire cost of your system.

Better yet, with a loan, you’ll own your system and you’ll be entitled to all the rebates, tax credits and, other incentives. These benefits allow you to maximize the return on your investment in solar.

There are two types of solar loans: secured and unsecured. With both types, there are zero down options, so you won’t have to put any money down. Regardless of which type you use, your monthly loan payments are likely to be less than your current electric bill so you’ll start saving money right away, without incurring any upfront costs, and, over time, as electricity prices continue to rise, your savings will continue to grow.

Solar Loan Basics1. Home Equity Loan

Home equity loans or home equity lines of credit are the most common form of secured loans. With this type of loan, you borrow against the equity in your home. Your home serves as collateral. These loans have favorable terms and the lowest interest rates, from 3.5-5.5 percent. Additionally, the interest on the loan is tax-deductible.

But – if for some reason you were to default on a loan, the bank has the option to foreclose on your home.

2. FHA, Title 1 Loan

FHA, Title 1 loans are a very similar type of secured loan, guaranteed by the government, where your home also serves as collateral. Similarly to the home equity loan, the terms are also favorable, with low-interest rates ranging from 5 to 7.5 percent. If you default on the loan in this case, the lender will have a lien against your home, so that the loan will be paid when or if you sell your house.

3. Unsecured Loans

These loans do not require any collateral, which makes them riskier for the lender and that risk is reflected in the higher interest rate. Unsecured loans are similar to other personal loans. Interests on these loans are not tax deductible, and if you were to default on an unsecured loan, your credit score would be impacted.

4. & 5. “They Own It” – Solar Leases or PPAs

Solar leases and power purchase agreements, also known as PPAs, allow you to take advantage of the financial and environmental benefits of solar without owning your solar panel system. Both options are similar to renting. You can think of it as a car lease.

With a solar lease, you pay a monthly fee for the system and get to use all the electricity the solar panels produce – for free. With a PPA you agree to purchase the electricity the system generates at prices that are lower than what you would pay your utility.

Solar PPA BasicsMost leases and PPAs have zero-down options so you won’t pay anything upfront. Your monthly payments for a lease or a PPA are usually less than your current electric bill, so you begin saving right away. A solar lease or a PPA will help you to save 10 to 50 percent over your utilities and electricity bills without making any upfront investment.

Although solar panel systems require little to no maintenance, if something were to happen, the lease or the PPA company would be responsible for any repairs, since it is the owner of the system.

Securing a lease takes less time and effort than securing a loan. Generally, you sign a 20-year contract with the leasing company, and they will install the panels at your home. You usually will need to have a credit score of more than 700 to qualify for a solar lease or a PPA.

What Is the Best Option for You?

Since the leasing company owns the solar panel system, many of its financial benefits, things like rebates, tax credits and incentives would go to them. So if you’re looking to maximize your investment in solar, the better choice would be a solar loan.

Leases and PPAs, on the other hand, are a great option if you’re looking for a simple solution. They are also a good option if your taxes are less than the tax credit you would receive.

In the end, once you understand your financing options, you need to choose the one that’s best for you, and that best fits your needs and goals. 

 

Jul 20 2018
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South Korea’s Q CELLS to Open Georgia Solar Factory

By Solar Panel Installation Process No Comments

In the wake of US tariffs on non-domestic solar modules, Q CELLS is opening a solar module factory in Georgia.

The South Korean company announced its decision in May 2018 and will begin construction this year. The $150 million facilities, which is scheduled to be completed in 2019, has an estimated yearly production capacity of more than 1.6 GW.

A factory of this size could make it the largest solar manufacturing facility in America.

Q CELLS Solar Tangos with Tariffs

In January, President Trump announced a 30% tariff on all foreign produced solar modules.  Some lawmakers and industry stakeholders are working to reverse the legislation, but in the meantime, international solar module manufacturers must find a way to contend with the tariffs.

According to the company’s press release, the “new manufacturing fab is a testament to Q CELLS Korea’s commitment to the U.S. market, in spite of the recently imposed trade barriers.” Q CELLS already operates facilities in Malaysia, Korea, and The USA.

Modules assembled in the U.S., however, are not subject to solar tariffs. Building a facility in Georgia allows the Korean company to avoid price markups that make their modules less attractive to American buyers. Furthermore, there is a currently a 2.5 GW tariff exemption for foreign-made solar cells being imported into the U.S. Q CELLS is further reducing prices for their U.S. market by continuing to import foreign produced solar materials (up to 2.5 GW worth) that will only be assembled in Georgia, not produced.

After China, the U.S. is the largest solar module market in the world. Exclusion from American solar sales is thus a huge economic loss for Q CELLS. According to a press release, the new plant will help the Seoul-based company maintain access to traditional U.S. buyers and will also “enable Q CELLS Korea to widen its customer base in the U.S.” Because American markets value quality, Q CELLS believes that modules produced in the U.S. will appeal to a wider demographic.

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Q CELLS Q.PEAK DUO BLK-G5 300-320 module

500 or More Green Jobs for Dalton, Georgia

Q CELLS has chosen to build in Dalton, Georgia – a decision that will bring the town more than 500 jobs. “We are excited to bring our technology leadership to Georgia in manufacturing solar modules and look forward to building long-term relationships to further expand our manufacturing base and contribute to environmentally sustainable energy solutions,” said  James Choi, vice president of Q CELLS.

The company’s choice of Dalton, Georgia for the location of their solar module factory is not unusual. In fact, Korean-affiliated companies already run more than 80 facilities throughout the state. Governor Nathan Deal believes that Georgia is the best state in the country for business. As such, they offer “the skilled workforce and extensive manufacturing resources needed for Q CELLS Korea to maintain its competitive edge in the global solar industry.”

Q CELLS’ decision to open a facility in Georgia is a double win for Americans. Not only will it increase the number of jobs in Georgia, but it also helps to ensure lower prices and more module options for U.S. buyers. We’ll certainly be on the lookout to see if any other internationally owned solar companies decide to build in the U.S. or if legislation against the tariffs is successful.

Get Live System Bids on Q CELLS Solar Panels

With Solar.com’s online bidding platform, homeowners can get real-time quotes from local installers, including those who carry Q CELLS panels. Get started with our online solar calculator.