For Golden, CO homeowners, the invaluable help of a solar panel in reducing their daily energy consumption is one of the most helpful things they’ve ever had. Solar panel installation specialists in the area know exactly the best models, designs, and installation methods to introduce solar energy and technologies into their lives.
However, we do admit that solar panels can get extremely costly from materials to labour, especially for high-end solar panel systems. But, proper financing is greatly helpful in helping homeowners achieve their goal of having a top-notch solar panel system on their property. Unfortunately, some unscrupulous groups endorse “free” solar panels and installation services for Golden, CO homeowners.
These individuals endorse them as no-cost solar panel services. Customers will get the typical pitch about financing solar panel systems, including labor, and it doesn’t even involve down payments. In most cases, you’ll need down payments to reduce the risk on both sides of the spectrum, and having none in these deals is a big red flag that’s about to steel your cash from you.
If you want to learn more, EcoWatch has an excellent description of everything that’s happening. Read more about it below.
Are ‘Free Solar Panels’ A Scam?
The marketing strategies advertising “free solar panels” are designed to entice, but in many cases, solar leases and PPAs end up being impractical choices for homeowners. In some severe cases, solar companies have even faced lawsuits over falsely advertising “free solar panels” to unsuspecting customers who lost thousands by signing unfair contracts.
The average solar lease can indeed save a customer money, but only when things go smoothly. If you sign a solar lease and change your mind, sell your home or your system experiences production issues, you can run into costly surprise bills. Here’s why:
- Leases have hefty cancellation fees, sometimes as high as $20,000.
- If you ever decide to sell your home, transferring a lease to a new homeowner can be challenging. If the new owner doesn’t agree to assume the solar lease, you might have to pay to move the panels to a new residence, or worse, be forced to cancel your lease.
- In a worst-case scenario, hiring a low-quality solar installation company can lead to issues with your home or roof. Solar leases may not offer workmanship warranties, so you could face bills for any damage to the integrity of your home.
Solar leases and PPAs are not themselves scams, but homeowners should be cautious and educate themselves before signing a lease. Make sure to always read the fine print.
So, if “free solar panels” aren’t really free, what is the best way to pay for solar panels?
1. Paying for Solar Panels in Cash
Paying for solar in cash will yield the most long-term savings. By purchasing a home solar system outright, you're essentially paying for about 25 years of discounted electricity at once. A cash purchase allows you to calculate home energy costs decades in advance, avoiding interest rates, fees and utility rate hikes.
2. Solar Financing Through Loans
We understand that spending $15,000 or more up front just won’t be feasible for all homeowners. Solar loans allow you to borrow money from a lender to purchase your solar system, which you can repay over time with your energy savings. Typically, solar loans come in the form of unsecured personal loans, home equity loans or lines of credit, and in-house financing options offered directly through a solar installation company.
Taking out a solar loan offers a key benefit to borrowers: A low initial payment that doesn’t make you lose out on the benefits of system ownership — mainly the federal solar investment tax credit, used to offset 26% of the total cost of solar. (Continue reading here to learn more.)
Make sure you’re not working with scammers and only with reputable solar panel installation teams in Golden, CO. Roper Roofing and Solar is always here to provide you with the best installation services available. Contact us today to learn more about everything that we can do for you.