Solar panels on your roof? More and more often it appears that this is very profitable in the longer term. But where do you get the money to buy these solar panels?
Can you deduct the interest?
It is becoming increasingly common for solar panels to be financed with a loan. You then borrow money and buy the solar panels. A payday loan is generally the most favorable option. You borrow the purchase amount in one go and pay the interest due during the term of your loan. It does not matter for the loan whether you place the panels on a rental property or on a property for sale. This does make a difference for your costs. If you live in a owner-occupied home, you can usually deduct the interest due from your income. On the net, you end up with a lower monthly payment.
Accelerated repayment with financial windfall
With a payday loan you keep a good overview. Every month you pay a fixed amount to the institution with which you took out the loan. This amount includes part for the repayment of the debt and part interest. Once you have a financial windfall, you can often pay off the loan quickly. Pay attention, because sometimes penalty interest is due. After all, the lending agency will miss out on some interest income in the future, because the loan will shorten the duration of the loan slightly. The penalty interest serves as partial compensation for this.
Sometimes lower interest due to sustainability
There are various providers who want to lend you money for solar panels. Some banks support you with a lower interest rate. Various municipalities also offer loans. They mainly have sustainability in mind. Before you start borrowing for solar panels, it is good to calculate your total cost benefit. Solar panels earn themselves back in the longer term, because your energy costs are lower. This does take a little longer if you take out a loan before purchasing. Put the costs on paper for a moment, then you immediately have a good overview!