What Solar financing is Right for me?

With so many options now available for financing a solar system it’s easy to get information overload. Don’t worry, we’re here to help! Let’s take a look at the most common solar financing options so that you can decide which one is best for you.

Right at the top of the perks list for financing rooftop solar is having your system designed and installed with no upfront cost. Yes – those “zero-down solar” advertisements you’ve seen are the real deal!

We’ve partnered with the most trusted names in solar financing to ensure that our customers always get the best deal for their families. These providers offer a number of great options. You can save on your monthly electricity without having to pay anything out of pocket beforehand.

Let’s talk about how Solar Leases, Power Purchase Agreements (PPA), and Solar Loans work and how to determine which one is right for you.

 

Solar Leases

Leasing is the easiest way to enjoy the benefits of a residential solar system. You essentially “rent” the panels and equipment that we install. Similar to leasing a car or apartment you pay a fixed monthly payment. With solar leases, you don’t own the panels, the leasing company does. This means you get all the benefits of solar without having to maintain the system yourself. The leasing company cleans and repairs the system as needed. This also means that as the owner the leasing company keeps any rebates, tax breaks, or other incentives that come with installing the system.

Solar lease agreements typically have an annual rate increase built in. Most lease agreements feature a 3% annual price increase but remain 20-30% cheaper than the cost of traditional electricity which continues to rise yearly.

 

Power Purchase Agreement (PPA)

Leasing is the easiest way to enjoy the benefits of a residential solar system. You essentially “rent” the panels and equipment that we install. Similar to leasing a car or apartment you pay a fixed monthly payment. With solar leases, you don’t own the panels, the leasing company does. This means you get all the benefits of solar without having to maintain the system yourself. The leasing company cleans and repairs the system as needed. This also means that as the owner the leasing company keeps any rebates, tax breaks, or other incentives that come with installing the system.

Solar lease agreements typically have an annual rate increase built in. Most lease agreements feature a 3% annual price increase but remain 20-30% cheaper than the cost of traditional electricity which continues to rise yearly.

 

Solar Loans

Another common option is the zero-down solar loan. Similar to other loans, you can borrow the amount needed to install your system and make monthly payments at a fixed interest rate. With solar loans you are the system owner. That means you’re entitled to all the financial benefits of solar ownership. These include state and local rebates in addition to the federal solar investment tax credit (ITC).

There are a number of options when shopping for a solar loan. Terms include 10, 15, 20, and 25-year options, and various interest rates are available – usually in the 2.99% to 5.99%* range. Your monthly payment depends on how much your system costs to install, your interest rate, loan term, and the type of loan you choose. Most solar loans don’t penalize early payment.

What incentives do I qualify for?

Another common option is the zero-down solar loan. Similar to other loans, you can borrow the amount needed to install your system and make monthly payments at a fixed interest rate. With solar loans you are the system owner. That means you’re entitled to all the financial benefits of solar ownership. These include state and local rebates in addition to the federal solar investment tax credit (ITC).

There are a number of options when shopping for a solar loan. Terms include 10, 15, 20, and 25-year options, and various interest rates are available – usually in the 2.99% to 5.99%* range. Your monthly payment depends on how much your system costs to install, your interest rate, loan term, and the type of loan you choose. Most solar loans don’t penalize early payment.

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