Home improvements are never cheap, but when you have the opportunity to upgrade to smart energy solutions, you have the chance to install an upgrade that will pay for itself. Adding solar panels to your home or replacing your furnace with a heat pump can add value to your home, lower your utility bills, and lighten your impact on the earth. Although they provide benefits, it’s important that you can find a way to finance them.
Pay in Cash
If you’re a good saver, you can certainly pay cash for your smart energy upgrades. It should be noted that saving for these upgrades will likely take time. Additionally, the abysmally low-interest rates available for most savings accounts may cause you to lose money over the long term. If you’re not a fan of borrowing, using cash means that you won’t have a monthly payment on the improvement debt, and you can enjoy the utility savings moving forward.
Secured Home Equity Loans
If you have equity in the house or in a strong housing market with rising values, check out a Home Equity Line of Credit or HELOC. Make sure that you can demonstrate to the loan officer that you will be increasing the value of the home with the smart energy improvement as this may increase the value in the house and the equity you can borrow from. After installing solar panels, you’ll see immediate savings on your monthly electric bill that you can use to offset the monthly payment. If the HELOC and mortgage combination becomes burdensome in the future, you can refinance the house down to one payment once the improvements are completed.
Lease Your Panels
If you’re considering installing a solar power system on your home, you may be able to lease the system from the installer. One of the nicest features of this system is there is no large outlay of cash for the installation. Many users find they simply move from paying their utility bills to paying the panel lease. You will need to do this on a home that you own. If you live in a condominium development or a townhome cluster, you’ll need to get your HOA on board with your lease.
Smart energy solutions provide several benefits. They not only save energy, but they also can save you money in the long run and be helpful if you ever decide to sell your home. However, finding a way to afford them can be a challenge. Consider paying in cash, using secure home equity loans, or leasing your panels. Whatever method works best for you, you are sure to enjoy your smart energy solutions for your home.