Perhaps you’ve noticed the growing number of solar panels on homes and commercial buildings in your area. There are neighborhoods where a roof topped with solar panels is a common sight. The long-term savings on energy bills is a huge benefit for some, while others seek the opportunity to embrace renewable energy and lower their environmental impacts. Some states are either considering or are requiring the installation of some sort of solar power systems on new construction.
Federal Tax Benefits for Solar Systems
One of the most attractive and cost-saving benefits for solar is the 26 percent tax credit for residential solar installations made available by the federal government. This credit is available for homeowners who secure the purchase and installation of a solar power system on their homes. This credit covers both primary and secondary residences in the United States. Note: In 2023 the federal tax credit will decrease to 22 percent, and is due to be phased out entirely by 2024. Now is the time to buy a solar power system for your home. If you need residential solar financing in Chesapeake VA, here are some things to consider.
State Incentives for Solar
You may be eligible for state-sponsored incentives based on where you live. In some states the purchase of a residential solar system is exempt from the state sales tax. In other states, surplus energy generated by your home solar system can be returned to the grid through your local power utility for energy credits or a cash rebate.
To identify the programs available for your state, please reference the Database of State Incentives for Renewables & Efficiency.
There are some suppliers in the solar industry that offer rebates and incentives for products such as solar panels and batteries for power storage. These rebate programs are often short-lived and are not widely publicized. Most of these incentives are made to the installers, who in turn pass the savings along to the individual homeowner.
Not every homeowner is in a cash position to purchase a home solar power system upfront. There are financing options available to fit the budgets of motivated homeowners who are interested in upgrading to solar for their homes.
Home Equity Loans & Lines of Credit
If you own your home outright, or have a significant amount of equity in your home, you have the opportunity to borrow against the value of your home with an equity loan or a line of credit loan. These loans allow you to use the value of your home as security against the loan. This may be the option for financing your residential solar panel in Chesapeake VA.
Fannie Mae & FHA Loans
There are two types of federally-backed mortgage loan options available for homeowners who wish to finance the purchase of a home along with simultaneous upgrades and renovations. The Fannie Mae Homestyle Renovation Loan allows a very high loan-to-value ratio, as much as 97 percent, but the application process is complicated, and all work must be completed within a year.
The FHA 203(k) Loan is a mortgage rehabilitation loan that allows for renovations and the mortgage itself on a single loan.
Possibly the best option for people who need quick access to the funds, and a good credit score will secure the best interest rates. These loans generally do not require a great deal of home equity in order to qualify, and come with fixed rates.
Many solar power installation professionals also offer financing for installation. Get the best available rates by calling one of the leading solar companies in Chesapeake VA. Call Expert Solar Pros at (757) 988-7777.
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Looking for solar installation services in Virginia Beach, Chesapeake, and Norfolk? Give us a call at 757-988-7777 today! Our experienced team is ready to help you with the Federal Tax Credit and guide you through our low-interest financing option.