Good news for homeowners: The Federal Reserve's December rate cut is making it easier to afford rooftop solar panels, according to EnergySage.
By dropping rates a quarter point to 4.25%-4.5%, the Fed has opened up new opportunities for families to save money while creating a cleaner home.
The scoop
Solar costs fell during the past year, and now lower interest rates are sweetening the deal even more.
The math is simple: When you borrow money at a lower rate, you pay less in interest over time. For a typical $30,000 solar system with a 20-year loan, this latest rate drop saves about $3,000 in interest payments.
"It may not sound like much, but this third rate cut will continue to save solar shoppers thousands of dollars in interest over the lifetime of their solar panels," says Spencer Fields, director of insights at EnergySage.
How it's helping
The biggest win? A faster path to free electricity.
Most people who go solar through EnergySage pay off their systems in under 10 years, way ahead of their 20-year loan term. With interest rates down, that timeline gets even shorter.
Your monthly electric bill savings typically outweigh your solar loan payment from Day 1. Add in the new lower rates, and you could save up to $10,000 in interest costs over the life of your loan.
Want to know exactly how much you could save? EnergySage's free tools let you get quick solar installation estimates and compare quotes from local installers. Switching to solar is one of the best ways to lower your monthly bills while reducing overheating pollution from power plants.
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The cost of installation 💵 The timing couldn't be better to make your roof work for your wallet. Unlike trying to time the stock market, installing solar is a reliable investment that pays dividends through decades of free, clean power, no matter what happens with interest rates down the road.
Like any loan, look at the annual percentage rate (APR), not just the interest rate, since APR includes all fees. Your savings will depend on factors like local electric rates and sun exposure.
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