6 Ways You Can Finance a PV Solar System

As more people are embracing eco-friendly living, many homeowners and businesses are turning to solar power. However, the upfront cost of installation can be a hurdle. Thankfully, there are now financing options available to make it easier for everyone to make the switch to solar energy. Keep on reading to discover more.

 

What is a PV Solar System?

 

A PV solar system, commonly referred to as solar panels, consists of photovoltaic (PV) cells that capture sunlight and convert it into electricity. These systems vary in size and can be installed in residential or commercial settings. Opting for solar energy offers substantial advantages for both homeowners and business owners, such as cost savings, promoting eco-friendly practices, and achieving greater energy independence.

 

Why Should I Get a PV Solar System?

There are many reasons to install solar photovoltaic electricity, such as reducing your carbon footprint as well as your annual electricity bills. Discover more reasons why you should invest in a PV Solar System here.

Environmental Benefits

Deploying solar panels on your residence offers a highly efficient method for diminishing your carbon footprint. Despite the carbon emissions linked to solar panel manufacturing, these are swiftly counterbalanced once the panels are installed and in operation. Depending on your area’s electricity sources, solar panels generally require 2-3 years to neutralise their life-cycle emissions, paving the way for decades of clean energy production, water preservation, and cost savings.

Long System Lifespan with Minimal Maintenance

Backed by a solid track record, solar PV systems boast exceptional reliability and demand minimal upkeep due to their lack of moving components. Manufacturers typically offer warranties ranging from 20 to 25 years for the panels, ensuring long-term performance. With the anticipated lifespan of the solar PV system, you can expect to enjoy free energy for at least 25 years following installation.

Reduced Energy Bills

You can maximise your electricity bill savings by adjusting your appliance usage to coincide with peak solar generation times. This is because any excess electricity consumed during these periods, instead of being exported to the national grid, translates into greater cost savings for you. By strategically utilising electrical devices during daylight hours when your solar panels are actively generating electricity, you can effectively reduce your consumption and capitalise on your solar energy investment.

Reduce Your Dependence on Electricity Providers

It’s widely recognised that energy costs have surged in recent years, and with the dwindling reserves of fossil fuels alongside increasing global demand, this upward trend is expected to persist. By installing a solar PV system, you can diminish reliance on grid-provided electricity and major commercial energy providers, effectively mitigating the impact of future energy price hikes.

Exploring Solar Panel Financing Options in the UK

 

If you’re considering installing solar panels in the UK, there are various financing options available to suit different preferences and financial situations. Here 6 ways to finance your PV solar system to consider:

1. Direct Purchase

The most convenient way to finance your solar panels is by opting for a direct purchase by paying the total cost of the system upfront. While this method involves a higher initial investment, you own the installation outright from day one, eliminating ongoing payments.

2. Solar Panel Leasing

Subscription models offer a convenient way to use solar panels without the upfront costs. Under this arrangement, you pay a fixed fee for a predefined period, usually around 20 years. This fee typically covers maintenance and servicing. At the end of the term, you have the option to purchase the system at a residual value or have it removed.

3. Personal Loans

Obtaining a loan from a bank or financial institution allows you to finance your solar panel installation with flexibility in terms of loan duration and interest rates based on your creditworthiness. However, as with all loans or forms of finance, this shold not be your first option.

4. Community Solar Programmes

Participate in community solar projects where multiple individuals share the costs and benefits of a solar installation, often through membership or subscription models.

5. Financing Through Installation Companies

Many installation companies offer financing options, requiring a down payment to secure the contract. You’ll then pay the remaining balance over a set period, typically between 1 to 5 years. Some companies offer lower interest rate products or zero-interest rate products, which may be subsidised by the company.

6. Mortgage Extension

Some mortgage providers consider solar panel installations as value-added home improvements. You can inquire about extending your mortgage to cover the cost of the solar panel installation, especially if you have attractive mortgage terms.

Each financing option has its pros and cons, so it’s essential to carefully evaluate your preferences and financial circumstances before making a decision.

—TechRound does not recommend any financial or investment practices. All articles are purely informational—