Residential Solar Financing
At Tick Tock Energy, we understand financing can play a big part of going solar, especially in residential solar financing. Our solar experts work with you to cut your utility costs AND help you find affordable and flexible solar financing options for your area.
Why Finance Solar Your Home or Farm Solar Investment?
Don’t have enough money to afford the up-front cost of solar? If you wait, you’ll delay reaping electricity bill savings and might miss out on great incentives that can help pay for the system. Solar panel prices have dropped considerably over the years and are now more affordable than ever!
Tick Tock Energy works with various lending companies specializing in solar loans. We offer stream-lined financing with simple application process and competitive rates. Since our lenders offer specialized financing programs for solar, the qualifying process often goes faster.
Financing Options for Your Home or Farm?
If you’re a home owner or farmstead owned as a sole proprietorship we have a solar loan product that can help. If you’re an incorporated farm business then check out one our commercial loan options here.
The various residential solar loan programs we work with feature options that can include the following:
- Financing up to $45,000 to $65,000 depending on solar lender. Higher amounts possible for financially strong applicants
- Secured and unsecured loan options available
- Fixed interest rates, often comparable to local bank rates.
- Many will qualify for loans from 3.99% to 6.99% depending on length of term and credit strength
- Actual rate will be quoted by lender after loan application submitted
- Ability to re-amortize the loan once in the first 2-years to drastically lower monthly payments
- No pre-payment penalties
- Short-term interest-only options available
Managing Your Cashflow with a Solar Loan
For Illinois homeowners and farm property held in your personal name (like a sole proprietorship), the key considerations in juggling a solar payment plan include:
- Monthly Payment which depends on:
- Amount financed
- Interest rate
- Length of financing term (the longer period results in lower monthly payment)
- The timing of receiving the 30% federal tax credit value
- The timing of receiving the Illinois SREC (solar renewable energy credit)
- Your monthly electric bill savings
In Illinois your monthly electric bill savings may not be exactly enough to offset the monthly cost of the solar loan. However, with the Illinois SREC or other state rebate, it’s possible to achieve positive cashflow on an annualized basis. Some months you may have negative cashflow (where the loan payment exceeds your energy savings). When the SREC payment is received, that will give you a big bump for the year and often put you “in the black” (or in a positive cashflow position). Adding the value of the 30% federal tax credit will provide an additional boost. You have to be a prudent manager of your monthly expenses and solar income (electric bill savings, SREC or rebate income, etc).
The graph on the left illustrates how the electricity savings or avoidance, tax credit value, SREC income and loan payments might occur over a 20-year period.
Don’t Let Your Electric Bill OWN YOU!
Solar is a long-lasting asset that will generate valuable electricity! Over 20-years, think about all the money you might spend on high electricity bills. Even with a solar loan, you’ll come out ahead. KEEP your hard-earned cash AND capture some great incentives that make investing in a solar a sound investment. The adjacent graph illustrates the cumulative cashflow difference over 20 years of financing your solar project with a 20-year loan vs. paying your electric bill over the same period.
Illustrating A Residential Solar Investment with Financing
The table on the left shows the potential year-by-year savings, loan costs, and possible incentives for an example in Illinois. Compare the “WITH SOLAR” annual and accumulated cashflow versus the “WITHOUT SOLAR” scenario. This table can help you plan to see if a solar loan is the right approach for purchasing your solar system. If you can pay-off your solar loan early, then your savings can grow even greater!
Paying CASH vs. 100% FINANCING Your Solar Project – EXAMPLE
SEE BELOW for various examples of residential Solar Financing based on the following plans:
- Cash Option
- Financing Option #1 – Single Loan – Full Amount
- Financing Option #2 – Single Loan – Less Tax Credit
