Solar panels may seem like an extravagance that you can't afford, but they may be more accessible than you realize. Here are some of the top ideas that may help you find the budget for solar panels.

Your Mortgage May Have Room for Improvement

If you already own a home, you might have some room for improvement on your current house payment that could help you fund your dream of adding solar panels. Refinancing your mortgage may be a possibility for you and could potentially help you save enough money for a pricey addition to your home. Additionally, if you can refinance your loan, you might be able to pay off your mortgage sooner, stop paying private mortgage insurance or use your equity to take cash out to fund home projects.

Because there are so many options for refinancing your home, you'll want to do some shopping around and talk to some experts to make sure you are making the most financially sound decisions. You will also need to have a decent credit score to receive better terms on your loan, so this option may not be available to everyone.

There May Be Grants Available

Because solar panels can save on utilities, making them easier on the electric grid and more environmentally friendly, there may be grants or other programs willing to fund the project for you. Your options will vary by your location, so you may need to search for local solar programs specifically for homeowners. If you cannot find a way to fund your panels fully, there are still other financial incentives available.

You may be able to receive federal tax credits, which can change over time and often have specific requirements you need to meet, so you should talk to your tax advisor to see if this is something you may be able to benefit from. Many local utility companies also offer rebates as an incentive for homeowners to lessen pressure on the electric grid, which is often calculated by how much solar power you produce. Often, companies that sell and install solar panels are knowledgeable about all of the potential savings in your area, so be sure to reach out to them if you are considering solar panels for your home.

Different Financing Options May Work for You

Even with these options, you may not be able to fully fund your solar project at home, which is where financing can come into play. There are solar loans available to homeowners, and if you qualify, you typically won't have to pay more per month than you are already paying for your electricity bill. By taking out a loan, you will own your solar system while working to pay it off over time, making it an asset for you and your home's value. Typically, with a loan, you can still get rebates and tax incentives, meaning you can lower the cost of your loan and potentially pay it off faster.

If you still cannot afford solar panels but are still determined to reap the benefits of adding them to your home, third-party ownership options may be available. These payment options are less popular, mainly because you don't own the panels on your home. You wouldn't be able to receive the tax benefits or refunds, and the additional home value may be debatable.

Solar panels are an incredible way to lower your home's utility costs, help out the environment and add value to your home. There are many ways to reduce the cost of such a large home improvement project, so be sure to seek advice and look at all of your options. You may be surprised at how accessible solar panels can actually be.