With utility rate increases in Illinois, going solar is a great way to lower your energy bill and lock in your energy costs. Here we can answer your questions on costs and savings of solar energy, available incentives and financial options.
With the cost of solar panels and solar energy technology steadily decreasing over the years, going solar has never been more affordable—and that’s on top of immediate energy bill savings and incentives that can significantly reduce your project costs by up to 65%. Though some homeowners prefer to pay cash in full, not everyone can pay upfront for a home energy system. Fortunately, there are several solar financing options available to homeowners such as solar loans.
30% Federal Tax Credit
In August 2022, the Inflation Reduction Act became law. In it are provisions to support solar growth by increasing and extending this federal tax incentive for 10 years! Receive 30% of the full system cost back as a credit against your total tax liability for the year your system was installed. This tax credit is 30% for systems ‘placed in service’ between January 1, 2022 and December 31, 2032.
The tax credit is non-refundable and requires that you have the tax appetite to be eligible. It can be carried over for 1 year. The home must be owned by the taxpayer but they don’t have to be the resident. For example, this can work if you rent your home or if you have a vacation home. Consult your tax professional to find out how this credit can work best for you.
Solar Renewable Energy Credits (SRECs)
Recover 20-30% of the original solar system cost with cash payments upfront or over 5 years, depending on system size, from the Illinois Power Agency. Solar Renewable Energy Credits are based on the production of your solar PV system. Click here to learn more.
StraightUp Solar has a seamless relationship with Clean Energy Credit Union to provide special financing to help people install solar electric systems on their homes. The Credit Union is focused on providing clean energy loans that reduce the cost of living for members while also contributing toward a more sustainable environment. These loans include solar, electric vehicles, batteries, and geothermal energy. StraightUp Solar works closely with the Clean Energy Credit Union to help customers finance their solar projects. Monthly payments in many cases can be equal or lower than your current electricity bill.
The solar loan through Clean Energy Credit Union was specifically designed to finance solar projects. It is split into two parts:
We want to make it as easy as possible for our customers to go solar. This financing product is what we offer most often with our solar installations.
You can get a home equity loan or home equity line of credit (HELOC) from your preferred bank. These are home improvement loans that allow you to borrow against your home’s equity. If approved, a home equity loan gives you a lump sum that you repay in equal installments over a set period of time, while a home equity line of credit gives you revolving credit that you can borrow against (up to your limit) and reuse as you pay it back (like a credit card).
Home equity loans typically offer lowest rates and tax-deductible* interest payments*. Banks and credit unions offer home equity lines of credit and check with your financial institution on their terms and conditions.
StraightUp Solar treats home equity loans like cash without any extra charges on our end, as we do not have to provide the financing product. You may encounter additional fees and loan processing payments from your bank though, so factor that into your decision-making process.
* Always contact a trusted tax professional to verify eligibility in your specific case.
Here are some final notes on the different solar financing options available:
Tax incentives – With a solar loan, unlike with solar leasing, you own the solar panel system outright and you may be able to take advantage of tax incentives.
Maintenance and repairs – With a loan, you own the solar panel system and you will have to pay for maintenance and repairs yourself. With a lease, SunPower (StraightUp Solar’s leasing partner in Illinois) will be responsible for the maintenance and monitoring of the system and costs won’t fall on you.
Long-term savings – When you purchase a solar energy system through a solar loan, the system will eventually be paid off. After that point, you are generating free electricity for your home without having to make monthly payments, giving you greater long-term savings than systems covered by solar leases.
Selling your home – If you want to sell your home, solar leases can be passed onto the home’s next owner.
Our Project Developers customize pricing for each solar array construction based on three elements:
The good news is the cost of going solar has come down 80% in the last decade, and it is affordable for the average working family.
Projects typically require little money down with financing, or range from $20,000-$60,000 before incentives.
We can estimate your pricing, including incentives and energy bill savings, with some information about your home and electric bill. Reach out for an estimate to get started.
Our handy two-minute quiz asks a series of questions to help you determine whether your home is a good fit for solar. Everyone’s situation is different, and we appreciate the opportunity to learn about your unique interest in solar!
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