For good reason, most people plan in advance for major purchases like a new car, home or other, infrequent expense. Considering the scale of most residential or commercial solar power system installations, the costs for a complete solar solution can grow into the five-figure territory fairly quickly. Before even investigating financing options for any of the above, the question arises, “Can I afford it?” There are at least two ways to answer this question:
Can I afford the overall cost of the project? This approach looks at the entire cost of the system writ large, without considering the monthly cost of paying down the loan needed to complete the work. If you receive a quote for a $20,000 and you only have a cash budget for $15,000 and you don’t have the tolerance to take on a monthly payment, then clearly a new project is out of your budget unless you get creative about how you finance it.
Can I afford the monthly payment? Given a long enough term on a loan, monthly payments can be very manageable even for projects that are, overall, very costly. Before determining that a solar system is out of budget, first consider what the monthly payments would be by financing at least part of the cost of the project. This can help to resolve an otherwise difficult financing situation, without forcing you to pay more than you can stand every month.
We get a lot of questions from business and homeowners who want to know how much a solar power system costs and the reality is that there is no easy answer because every building and every customer need is different. Regardless of the building type, location, kilowatt hour requirements or installation strategy, there will need to be a discussion around budget, financing, and interest (if a loan is agreed upon). During your evaluation of a solar power system provider, do not neglect to ask the question both ways, “Can I afford the overall cost?” or “Can I afford the monthly payment?”
Urban Solar specializes in bringing solar power solutions within reach for home and business owners throughout Florida. Contact us today to learn more about how you can harness the power of the sun to offset energy costs, live more sustainably and contribute to your local economy. We look forward to hearing from you!