Investing Basic

Taking out a Loan for Green Energy

Many of us feel the environment is important and that it should be preserved. We are also a little tired of the monopoly energy companies have on us. Unlike other countries, such as the UK, we have to pay the high energy fees because there is no alternative company. The only other options are solar power or wind power in order to get away from the harmful coal products 50 percent of the US electricity is created with. Add in that there is an increase on average of 6.7 percent of use each year and escalating prices and alternatives like solar energy look better and better.

The downside is the cost. In order to get 3.5 kW solar panels it generally takes $30,000. However, some states are creating new bills that will make this more affordable. The system allows for a third party to own the solar electric system that is on a person’s house. They are even responsible for permitting, insurance, and 24/7 monitoring and maintenance. It does enter in a third party that can make the energy cost a little more, but on the other hand it is a green option and it will be a better alternative to the current energy monopoly most of us are a part of.

The loan is a 20 year plan guaranteeing the system products for that length of time. If it does not produce the energy one desires for the 20 years there is a reimbursement made on behalf of the third party company. To get started one has to have good credit scores of 680 or above. The good news is with this type of plan one also knows what the energy bill is going to be for the next 20 years. There is no balloon on the pricing due to the loan structure. It is a better option than going to national pay day for a loan just to pay the current energy bill based on the increase for winter or summer usage.

Many of us find that with air conditioning and heat running we pay at least $100 per month and closer to $150 for a family of two to three. When the budget doesn’t allow for that we wish we could lower our bills. A green option like solar panels can be the way especially with a third party option allowing the cost to be more effective.

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