The Federal Reserve cut interest rates, and while it’s meant to support the broader economy, here’s how it helps homeowners go solar.
Last week, the Fed cut interest rates by a half point, lowering the benchmark lending rate to 4.75-5.25%. Over the past few years, higher interest rates meant that financing a solar system was more expensive, which pushed out the break-even point for those investing in solar. Many homeowners and business owners became hesitant to take the plunge.
But now, the Fed’s September rate cut – combined with dropping installation costs – makes going solar even more attractive. Homeowners will see faster returns on their solar investments compared to a year ago. According to a blog by EnergySage, this 50-basis-point reduction means that a $30,000 home solar system could cost around $3,000 less over the course of a 20-year loan, thanks to reduced interest payments.
Even though solar is a solid …