Buying with Bank Financing

[silversaver]

Financing solar isn't a bad idea at all, but at what rate matters. If you have excellent credit financing @2.9%, why not. If you don't have money and no strong credit, perhaps you just dig another hole for yourself. Don't do it, It is already proven that you are not good at making financial choice....

[Sunking]

Just to be clear: if someone gave you the same amount and term except the payment was $208/mo that would still be a bad deal, right?

Would be for me since my electric bill is never above $100/month.

[Ian S]

OK same amount and term but 4% works out to $288/month. My point is if you have to borrow payments plus electric bill will be a heck of a lot higher than just current electric billl. For many 2 to 3 times more for 10 years.

Just to be clear: if someone gave you the same amount and term except the payment was $208/mo that would still be a bad deal, right?

[joegovette]

You can get short 1 year no interest loans for the 30% federal and in my case 10% state. If you don't pay off the amount in that year, then the interest is extremely high. You would still have to figure out the other 60%. If you have good credit, then you can get very creative on the other 60%. It really depends on your financial situation.

[Sunking]

Depends on how you do it
Through a vendor unsecured plan on paying a lot more than 4%. These are generally unsecured so interest rates are higher and interest non deductible.
HELOC money can be had for about that.

OK same amount and term but 4% works out to $288/month. My point is if you have to borrow payments plus electric bill will be a heck of a lot higher than just current electric billl. For many 2 to 3 times more for 10 years.

[Naptown]

4% on a mortgage with excellent credit, but a panel system?

Depends on how you do it
Through a vendor unsecured plan on paying a lot more than 4%. These are generally unsecured so interest rates are higher and interest non deductable.
HELOC money can be had for about that.

[Sunking]

Further money can be had at about 4% now a days

4% on a mortgage with excellent credit, but a panel system?

[Naptown]

Many have but a very bad idea. If you cannot afford to pay in cash, don't do it.

For example borrow 25K, 10 year term, 7% interest. For the next 10 years you owe the bank $302 month plus an electric bill on top of that each month.

Invest the same 25K and in 10 years you more than double your money.

Under what assumptions is that derived?
And if a secured loan what about the interest deduction.
Further money can be had at about 4% now a days

[Sunking]

Many have but a very bad idea. If you cannot afford to pay in cash, don't do it.

For example borrow 25K, 10 year term, 7% interest. For the next 10 years you owe the bank $302 month plus an electric bill on top of that each month.

Invest the same 25K and in 10 years you more than double your money.

[joeknowmoney]

Has anyone used credit union or bank financing to purchase their solar system? It appears that there are a number of local (San Diego) and national banks that will do solar loans based on credit score. Does anyone have any good or bad experience with such financing?

Thanks in advance.

~Joe