Solar Financing Options
If you’re considering installing a solar system on your home, there are several financing options available:
Cash purchase: You can buy a solar system outright with cash. This is the most straightforward financing option, and it allows you to maximize your savings over the lifetime of the system. If you use this option, you will be able to take advantage of the Federal Investment Tax Credit (ITC) available as the owner of the system. You will be responsible for the operations and maintenance of the system.
Solar Loans: You can take out a loan to finance your solar system purchase. Many solar installers offer financing options with competitive interest rates. If you use this option, you will be able to take advantage of the Federal Investment Tax Credit (ITC) available as the owner of the system. You will be responsible for the operations and maintenance of the system.
Power Purchase Agreements (PPAs): PPAs allow you to purchase the energy your solar system produces rather than the system itself. You typically pay a fixed rate for the energy, which is usually lower than your current utility rate. The installer is responsible for installation, maintenance and repairs.
Solar Leases: A solar lease allows you to rent a solar system from a solar provider for a fixed monthly payment. The provider is responsible for installation, maintenance, and repairs.
Property Assessed Clean Energy (PACE) financing: PACE financing is a type of loan that is secured by your property. It is used to finance energy efficiency and renewable energy improvements, such as a solar system. The loan is repaid through your property taxes over a set period of time. Not all solar installers are PACE qualified.
Some factors to consider when considering a home solar system are the upfront costs, interest rates, repayment terms, and any additional fees or charges associated with each option. We can help you understand each of these options and work with you to find the appropriate solar installer in your area for the installation, operations and maintenance.