Finance Options For Your Solar Journey 

After working with many customers over the years, we always recommend paying cash for a solar installation if it’s an option. Here’s why:

1. Higher ROI: Cash payments mean no interest charges, so every dollar saved on energy bills goes straight to recouping your investment, resulting in a quicker payback period.

2. No Monthly Payments: Cash purchases eliminate monthly loan obligations, allowing all energy savings to directly benefit your finances, especially as utility rates continue to rise.

3. Boosts Property Value: A fully-owned system adds to your property’s value and appeal, as potential buyers won’t need to assume financing obligations.

4. Full Tax Incentives: Cash payments allow you to claim the full tax benefits without deductions for financing fees, maximizing your savings.

5. Preserves Financial Flexibility: Paying in cash keeps your balance sheet clear of debt, preserving credit for other important investments.

We’ve worked with bank agents from local Oregon credit unions like SELCO Community Credit Union and Northwest Community Credit Union, and we recommend them if you’re not paying for your solar installation upfront. While they may not always be the fastest financing option, these credit unions offer benefits that go beyond speed. Their flexible terms and community-focused values make them a reliable choice for Oregon homeowners.

Choosing a local credit union means receiving personalized service and competitive rates, plus you’re supporting local initiatives that contribute to our community’s growth and sustainability. 

 Local lenders are also familiar with state incentives and programs, like those offered by the Energy Trust of Oregon, ensuring you get the most from your investment.

For homeowners exploring solar financing, we recommend applying for a Figure HELOC as a starting point. The application is quick and easy—approval can take as little as 10 minutes with minimal information needed. With competitive fixed APRs and access to up to 85% of your home equity, Figure HELOC offers flexibility and cost-effectiveness similar to the community credit unions we’ve reviewed.

Once approved, you can choose to move forward with Figure or consider our recommended local banks. For a full look at Figure’s features and how it stacks up, check out our article, “Is Figure HELOC the Right Choice for Homeowners?”

When deciding between financing options for solar, we typically find cash loans offer lesser value due to the additional loan fees involved. For this reason, we generally don’t recommend cash loans for solar installations. However, if you’re interested in this option, Sungage Financial provides one of the best cash loan options tailored for solar, with competitive terms and solar-specific benefits. If you’re interested, we can work with you to explore Sungage financing to find the right fit. Learn more about Sungage Financial here.

Here’s a quick comparison to help you decide between a solar loan and a HELOC:

Solar Loans:

• Purpose-Specific Financing: Solar loans are designed specifically for solar installations, often offering terms that align with expected savings from solar energy.

• Fixed Interest Rates: Many solar loans come with fixed rates, providing predictable payments over the loan term.

• No Collateral Required: Most solar loans don’t require your home as collateral, reducing the risk of property loss in case of default.

• Eligibility for Tax Incentives: Financing your solar system with a loan can make you eligible for federal and state tax incentives, such as the 30% federal tax credit.

HELOCs:

• Flexible Use of Funds: A HELOC provides a line of credit for various purposes, not limited to solar installations.

• Variable Interest Rates: HELOCs usually have variable rates, which can result in fluctuating monthly payments.

• Home as Collateral: Since a HELOC is secured by your home, defaulting on payments could put your property at risk.

• Potential Tax Benefits: HELOC interest may be tax-deductible if used for home improvements, including solar installations.

In summary, if you want predictable payments and no home-based collateral, a solar loan might be your best fit. If you’re comfortable with variable rates and have home equity, a HELOC can offer flexibility. Interested in Sungage? Click here to learn more and see if it’s right for you.