Are you planning to install solar panels? Do you want to know more about solar financing options and time of use rates in Los Angeles? Solar has become very popular across the United States since the last decade. Now hundreds of thousands of solar panels are getting installed in the country as an increasing number of people are coming forward to invest in solar systems and reducing their carbon footprint. If you are interested in solar panels and want more details and will help you with all the required information to choose the best solar financing options depending on your specific needs.
Do You Meet the Roofing Requirement?
The key benefit of a solar panel is that it can work in almost all climates where enough sunlight is available. However, your rooftop can be a hurdle in rare cases. For example, if your house is very old and in poor condition or covered by some obstacles such as a tree, then your rooftop might not be a suitable option for solar panel installation. In addition, the size, slope, and shape of a rooftop will have a determining role. South-facing rooftops with a 15 to 40 degrees slope can be the ideal condition for a solar installation. The age of your roof will have an impact as well. If it is too old, consider replacement before going ahead with your decision.
Even if your roof is not suitable for solar, you can also enjoy the benefits of community solar. In community solar, many people use and benefit from a single solar array installed off or on-site. The cost will be divided between the users. So, it is important to inspect your rooftop by an expert to know it is suitable for solar or not. When you get a decision in your favor, use your rooftop. Otherwise, consider the community solar if it is available in your area.
How Much Can Be Saved From Solar?
Your savings on energy will mostly depend on the size of your solar system and consumption. Also, electricity rates will have a role. Therefore, you should inquire about the electricity rates set by your utility and how much compensation you will get for the excess solar energy. You can go through the National Utility Rate Database to know the current electricity rate in LA.
The cost of going solar has dropped significantly. Now, you will have to spend less on installing a solar than in previous years. The prices of the panels are dropping. In addition, the soft cost is reduced. Soft cost includes installation, inspection, and permitting. All of SETO’s funding programs are also working to offer a cost-effective solution to consumers.
What Is the Best Type of Solar?
There are two key solar technologies to pick up. These are photovoltaic and thermal. When photovoltaic technology uses an array of cells to turn sunlight into electricity, the other technology uses sunlight to heat air or water. If you use a lot of energy for heating purposes or you need to spend more on fuel than electricity for heating, then you can go with thermal investment. But you will have to take extra caution to choose a qualifier installer as solar thermal is not normally used for homes.
What are the Financing Options for Solar?
If you are looking for financing, then you might not have difficulty to choose the best suitable one due to the availability of different types of financing options. The innovative Property Assessed Clean Energy (PACE) program enables property owners to finance their solar system through property taxes. So, you will not have to spend money from your pocket. The best part is that they do not check your credit score to offer this benefit. Yes, this facility is available for the people of LA.
Under this program, you can get low-interest financing options for water and energy efficiency projects as well. In addition to this program, you can consider the following financing options.
Twenty Years Unsecure Plan
If you do not have equity in your home, you can go with this option. This type of loan is specifically designed to enable homeowners to install solar panels. However, you will have to meet some requirements to qualify for this lotion. The key requirements are the following:
- You need to have at least 680 or higher FICO score.
- You need to have a forty-five percent debt-to-income ratio
- The amount of the loan will be between $5,000 and $50, 000.
When it comes to the interest rate, it will vary from 4.99% to 9.99%. If the FICO score is more than 730, then you can expect the interest rate around 6.25%.
Home Equity Line of Credit
This is a popular method to finance PV system. It enables consumers to pay their loans at their own pace. Also, you will get immediate cash flow with minimum monthly payments. Yes, you will have to pay interest. Here are a few requirements to qualify for such a loan:
- 700 or more FICO score
- Twenty percent equity in the home after the loan
- Forty-five percent debt to income ratio
- The interest rate will vary from 3% to 5%
Twelve Years Combo Loan
You might find it as the most suitable option since you will have to pay only 1.99%. However, you will have to repay your loan faster. In this category, you will find two types of loan options, one is for one year with thirty percent of the total contract price and the next one is the remainder of the contract price that extends till twelve years. The qualifications are the following:
- 700 or higher FICO score
- Forty-five percent debt to income ratio
Lease Options
In this option, you can install solar panels with no upfront cost. It offers 100% visibility with a free maintenance guarantee. Here are the requirements.
- Monthly Lease
- Prepaid Lease
- 700 or higher FICO score
- No equity required
What Is the Average Cost?
The average cost for installing residential solar panels in Los Angeles is $4.23 for a 3kW, $3.86 for a 5kW, and $3.31 for the 10kW system.
