Are you a property owner in Virginia looking to reduce your energy costs and increase your property value? Solar panels might be the perfect solution, but we know the upfront investment can feel overwhelming.

When you think about installing solar panels, the first concern is usually cost. Solar panels, while a great long-term investment, can come with a notable upfront price tag. Fortunately, there are several incentives available that can help lower this cost significantly. One of the most popular is the federal government’s 30% tax credit, part of the Inflation Reduction Act.

Installing solar panels includes both hard costs and soft costs. Hard costs refer to the panels themselves, along with other essential equipment like inverters, solar batteries, and mounting systems. Soft costs, on the other hand, cover things like installation labor, permits, and administrative fees. Both types of costs are essential in calculating how much financing you’ll need for your solar panel system.

To determine how much solar will cost you, you need to understand how many panels your property will require. This number depends on several factors, including the size of your home, how much energy you use, and the efficiency of the panels you choose. For an average-sized property, 15 to 25 panels are typically needed, depending on energy usage and the type of panels.

There are three main types of solar panels, each with different efficiency levels and price points:

Although the upfront costs can seem high, solar panels offer significant long-term savings. By reducing or even eliminating your electricity bill, solar panels can help you recoup your investment over time.

If you don’t have the funds to cover the upfront costs of solar panels, there are several financing options that can help make the investment more manageable. Here’s a breakdown of the most common options:

Personal Loans

A personal loan is a common way to finance solar panels. With fixed monthly payments and interest rates, it’s easy to budget for. Many personal loans also have fast approval times, so you can access funds quickly. With this loan you gain fast access to funds, no collateral required, however, interest rates can be high if you don’t have good credit.

Home Equity Loans and HELOCs

If you have built-up equity in your property, you can borrow against it with a home equity loan or a home equity line of credit (HELOC). These loans tend to have lower interest rates than personal loans since they are secured by your home. You’ll need sufficient equity, and your home is used as collateral with this kind of loan, but gain access to low-interest rates, potential tax benefits.

Power Purchase Agreements (PPAs) and Solar Leases

With a PPA or solar lease, a company installs solar panels on your property with little or no upfront cost. In return, you either pay a fixed monthly fee (lease) or pay for the electricity generated by the panels (PPA).

Contractor Financing

Some solar installers offer financing through third-party lenders. This can streamline the process, allowing you to bundle your installation and financing into one simple agreement. You’ll benefit from a simplified process, potentially lower eligibility requirements. However, it can come with higher interest rates may apply, and some loans require a hard credit check.

One of the biggest benefits of installing solar panels is the ability to claim tax incentives. In addition to federal incentives, many states offer rebates or other perks, such as sales tax exemptions or the ability to sell excess energy back to the grid through net metering.

For property owners, solar panels offer more than just savings on energy bills. They can also increase your property’s value and attract eco-conscious buyers and tenants should you choose to rent or sell. In some areas, solar-powered homes may even rent at a premium. However, before making the switch, it’s essential to calculate your expected savings, research local incentives, and explore your financing options.

If you're ready to take the next step, consider reaching out to Vesta Home Energy, a trusted provider of solar panel services in Virginia. Our team of experts can guide you through the process, ensuring you get the best system and financing for your home.