Pre-Qualyfing for Solar Energy

As people look for ways to save money on energy costs and live a more sustainable lifestyle, financing for solar panels and equipment is becoming increasingly popular. Knowing how to get started when you’re looking into financing this type of purchase can be a challenge.

Solar power installation has become much easier in recent years, but the initial cost can still be expensive. Don’t be discouraged; various financing solutions have become available, allowing anyone interested in making their home more energy efficient to do so without breaking the bank.

Qualifying For Solar Financing

As with any other loan, financing for solar panels comes with a set of requirements before you can be approved. For example, most loans require applicants to provide proof of income and good credit history. You’ll also need to provide information about your current assets and debts to prove that you can make the required payments. Abstaining from other large purchases during the approval process is wise, to avoid introducing any surprises to the loan provider. Homeowners may also need to show that their property has enough space to install a solar panel system before qualifying for assistance.

The good news is that there are state and federal programs to offset these costs and provide monetary relief.

Tax Credits And Incentives

Tax credits and incentives can provide additional savings for solar panel or equipment purchases for those paying cash for their solar systems and those who finance as well. In Tennessee, there are state incentives, and tax exclusions are available in addition to the federal tax credit.

Tax credits and incentives:

  • Federal Tax Credit – A federal investment tax credit (ITC) allows people who purchase solar panels or equipment to deduct a percentage of the total cost from their taxes. The deduction is worth 30% of the price of the installed system through 2032.
  • State Incentives – Tennessee residents have the Solar Energy Equipment Tax Credit, which provides a 25% tax credit towards the purchase and installation of solar panels, up to a maximum credit of $1,000.
  • Property Tax Exemption – Property owners may be eligible for certain property tax exemptions depending on local regulations where they live. Exceptions apply to 100% of the added value to the property resulting from installing the renewable energy system. So, for example, if you install a solar panel system that adds $20,000 to the value of your home, you will not have to pay property taxes on that added value for 15 years.
  • Sales Tax Exclusion – The Tax Exclusion applies to purchasing and installing solar panels and other renewable energy systems like wind turbines and geothermal heat pumps. The program is available to residential and commercial customers with specific eligibility requirements.

To qualify for the Sales Tax Exclusion, homeowners and businesses must obtain a permit to install the renewable energy system and provide documentation of installation and its impact on energy efficiency.

In addition to these potential savings options, there are often other requirements and restrictions associated with different incentive programs to consider before investing in solar power solutions. Research all available sources before committing financially to any particular option.

Get Pre-Approved for Solar Today

Getting pre-approved for financing solar panels and equipment is a great way to ensure you can purchase them easily. At JTE Solar, several options are available to help you get your project underway quickly.

Our loan process is simple. We offer competitive interest rates and flexible terms so that you can find the best fit for your needs. Plus, our knowledgeable staff will work with you every step of the way to make sure your paperwork is complete.

We understand the importance of starting your solar project as soon as possible, so we strive to provide quick turnaround times. Our goal is to provide an easy and stress-free experience from start to finish so that you can enjoy the benefits of renewable energy sooner rather than later. So get in touch today, and let us show you how easy applying for solar financing can be!