Leasing solar panels allows you to save money on energy and pay the solar panel costs in smaller bits.
Many homeowners are concerned by the cost of electricity, but they hesitate to invest in solar panels because of the initial costs: between the equipment and the installation, they can cost as much as $40,000. Even with tax incentives and energy rebates, that is more than many owners can manage. Fortunately, financing options, like leasing, are available from many companies, allowing you to save money on energy and spread out the cost on electric solar panels. Does this Spark an idea?
Instructions
1. Boost your credit rating. There are several techniques to getting your credit score as high as possible. Pay down your credit cards, and use them minimally. Check the limits your cards show on your credit report and ask your issuers to update them if they are inaccurate. Continue using your oldest credit card accounts. Dispute old negative items on your reports and anything showing on the report that is not actually yours. Use a line of credit with an asset attached like a Home Equity Line to pay off credit cards and boost your score.
2. Find a company that offers financing options for solar panels. Some solar panel companies work with builders to install them, but offer the option of leasing the panels rather than wrapping them into the mortgage. Others offer leasing or financing options on the package itself.
3. Have the leasing company run your credit. The lease terms they offer you based on your credit may not work with your plans. You may want to go with a different company, so shop around for different options. Be careful not to have more than a few companies look at your credit within a forty-five day period though, or your credit score might dip. According to the Motley Fool, a cluster of minor inquiries can impact your credit as much as a hard inquiry, such as when you apply for a loan.
4. Apply for the lease with the terms that work best with your situation.
5. Make the required payments for the term of the lease, and at the end, either buy the panels with the balloon payment, or renew the lease. You also may have the option of having the solar panel company remove the panels.
Tags: your credit, solar panels, financing options, solar panel, credit cards, credit score
