We understand that Solar financing is an integral part of many solar installations, so we want to help you understand the different financing options available.

1. SOLAR FINANCING
Buy, Lease or Loan?

2. Solar panels are an asset to your home or business that can increase its
value, save you money, and increase your energy independence. For many
homeowners and business owners, there are two important factors to
consider:
● the cost of entry
● the ease of installation.
To choose the best option for solar panel financing, you’ll need to figure
out the estimated costs, what you can afford, and the different reasons to
finance before deciding to invest in solar.

3. Reasons for Solar Financing
1. Ditch the Utility Company
Start rolling back your meter the moment you flip the switch. You can reduce or
completely eliminate your electric bill from day one. Take into consideration how
much you’re going to spend buying the solar system and how long the system is
going to take to pay for itself by offsetting your utility bill costs over the years.
2. It Pays to Go Solar
Even with loan payments, a grid-tied system can pay for itself in about 6 years. Since
most solar panels are warrantied for 25 years, there’s plenty of time left to reap the
rewards of cheap, renewable energy.

4. Buying Solar
There are many reasons to buy; most importantly, when you buy it, you own it. Of
course, solar panel financing can be expensive, so the money you put upfront will be
a substantial investment. In most cases, you can claim the interest on your loan to
purchase the system as a deduction on your taxes, something you cannot do with the
solar lease program.
Systems are very reliable; they hardly ever need maintenance aside from a scheduled
inverter replacement a decade or two later. Inverters come with a warranty of 10
years (upgradeable to 20 or 25).

5. Solar Loans
Loans are available to qualified applicants. These loans help cover the cost of solar
panel financing and installation.
With a loan, you’re paying back both the solar system’s costs and anything you owe
on your mortgage, property taxes, etc, making any ROI or utility bill offset negligible
until the loan is paid.
Loans can often be paid off in as many as 10 to 20 years, which means you may be
paying them off for the entire life of the solar system. By the time your loan is paid
off, you may need to replace vital components to keep your solar system functioning.

6. Solar Lease / Power Purchase Agreements
(PPAs)
Solar panel leasing and PPAs (power purchasing agreements) are options if you’re
more concerned about offsetting your power bill and using renewable energy sources
instead. Solar PPAs vs. leases vary to some degree, but they both allow you to have
solar power installed without having to pay for a system.
One of the main advantages of leasing of solar system is that you are not responsible
for the maintenance, upkeep, and operation of it. That falls under the responsibility of
the lenders, giving you some added peace of mind, especially if your solar system is
on a vacation home or summer getaway.

7. Want to learn more about solar financing?
Talk to us