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Are you exploring solar energy for your home? You’re not alone! As utility rates continue to rise while interest rates are coming down, more Western New York homeowners are considering the switch to solar. As the region’s most trusted clean energy company for over 20 years, we’re breaking down how to buy solar panels for your home, the benefits of ownership, and how much each option saves against increasing utility costs.
Increasing utility rates vs. stable solar energy costs
First, let’s talk about why solar ownership is the way to go and how that compares to what you’re currently paying to the utility for your electricity.
Solar ownership provides the most significant long-term energy savings and protection from increasing utility rates.
As illustrated by this graph, over 25 years, here is what you would pay for solar ownership versus what you would pay to the utility for our average residential solar array.
- Total Paid to the Utility: $115,631
- Total Solar Loan Payments: $37,081
- Solar Cash Payment: $17,817
As you can see, on average, homeowners who go solar save over $78,000 over 25 years. This projection is based on GreenSpark Solar’s average residential solar array, and the starting utility rates as of October 2024.
This savings estimate is even a bit conservative estimate given that:
- Utility rate hikes are closer to 15%: Rochester utility rate hikes have been increasing at a higher rate year-over-year than this graph projects. National Grid is proposing a 15% increase for 2025 alone, and RG&E rate hikes of over 5% are already underway (a total increase of 16% over three years).
- Federal Interest rates are declining: Interest rates have already come down a half percentage point as of September 2024 and will likely continue to come down over the next year, making the return on investment for solar financing even more substantial as rates continue to come down.
- Solar lifespan is typically greater than 25 years: Solar equipment warranties are at least 25 years; however, a solar array’s lifetime is usually well beyond this, especially when you’re working with a local, trusted solar company like GreenSpark that provides full operations and maintenance plans to keep your energy system running smoothly.
Next, let’s explore each option for buying solar panels for your home.
Ways to Buy Solar Panels for Your Home
1. Cash purchase:
The most financially savvy way to buy solar panels for your home is through a cash purchase. Purchasing your panels outright not only allows you to take advantage of all of the Federal and State residential solar incentives but you’ll also:
- See immediate energy savings without a monthly solar loan
- Enjoy a return on your investment sooner through a shorter payback period
- Add immediate value to your home (about 4.1%, on average)
2. Solar loan:
Solar financing is the most common way to buy solar panels for your home. Like financing a car, you’ll make fixed monthly payments over the loan term, usually 5–25 years. You have multiple options for solar financing, including two incredible solar-specific financing offers through GreenSpark and NYSERDA (New York Solar Energy Research and Development Authority).
GreenSpark Solar Financing
GreenSpark offers exclusive solar financing that offers competitive interest rates for a low fixed monthly loan payment and:
- $0 down financing for up to 100% of your solar project
- No payments for six months, which means immediate savings on your energy costs
- Fixed payment for the life of your loan, which becomes more valuable over time as utility rates increase or we experience periods of inflation.
- Lien is secured by the solar equipment, not by the equity in your home!
- Easy, accessible credit qualification
NYSERDA Smart Energy Loan
In addition to GreenSpark’s financing, NYSERDA offers a Smart Energy Loan with incredibly attractive interest rates. With this loan option, you can:
- Finance up to $25,000 of your project costs
- Secure a competitive interest rate as low as 3.49 for eligible homes (check your interest rate here!)
- Supplement other solar project funding sources if needed.
Personal Loan
Last but not least, you may use a personal or home equity loan (HELOC) to buy solar panels for your home. This option may be most appealing for homeowners who have accumulated a great deal of equity in their homes or can secure a stronger interest rate offer through a preferred financial institution.
What’s the best option for buying solar panels for your home?
The bottom line? There’s no “right” way to buy solar panels for your home. You can combine financing options as needed. Here is an example of how a GreenSpark residential customer used a combination of solar incentives and financing options to fund their solar project and reduce their final out of pocket cost.
Our team will work with you one-on-one to evaluate the best financing plan for your energy and budgetary needs.
Get a Customized Solar Plan for Your Home
Ready to explore solar for your home? Use the form below to speak with our team about how much you could save and the best financial plan for your budget.
