Solar Options
Cash
A solar cash purchase is exactly what it sounds like: you purchase your panels with a full payment when you have your system installed. This method used to be the only way to go solar, but it’s become the least popular method today.
However, that doesn’t mean there’s anything wrong with a cash purchase. On the contrary, it actually allows homeowners to capture more savings than any other solar financing options. Of course, the downside is that it requires you to put out a significant amount of cash that you won’t have available for other expenses in the meantime.
If you can afford, purchasing solar panels in cash is a phenomenal way to go solar. You truly own your power and are insulated from the power market while your panels are producing energy. Homeowners who choose to go solar with a cash purchase are able to take advantage of all federal and regional tax credits and incentives and are able to truly say they own their power.
Financing
Solar financing works just like a bill swap, your current electricity bill is eliminated and replaced with a fixed and often lower solar payment. Then you make these solar payments for a fixed period until the system is paid off and you never have to pay for electricity again. A variety of solar financing options are available from solar providers and private lenders that are specific to solar energy systems and have low interest rates. This method has become the most popular way that homeowners are going solar.
With this option the homeowner is still considered the owner of the system and is able to take full advantage of tax credits and other incentives. Most homeowners pay off their solar system in as little as 7 to 10 years. Because the solar system adds value to your home, each payment you make is equity in your home just as your mortgage payments.
If your looking to sell your home don’t worry! if the system isn’t fully paid off when you are selling your home simply add the value of your system onto the purchase price. That way when the house is sold the system is paid off and you revive all the equity that you have built up. Financing a solar system is the best way of getting all the advantages of solar while still paying as much as much if not less than what you currently pay for electricity.
Leasing
Just like taking out a lease on a car, leasing a solar energy system involves making monthly payments to the solar company for the use of the solar energy system. With this type of plan the homeowner can take advantage of energy savings on their utility bill, but they do not own the system.
A lease involves a third-party developer or solar provider installing, owning and maintaining the solar system on the homeowner’s property. The developer then sells the solar power generated to the homeowner, for a rate that is much less than what they would pay the local utility company.
Renting allows you to obtain your solar energy system and save on energy costs for no money down. It’s also a good option for those who may not be staying in their current residence long-term. Another benefit is the owner of the system will be responsible for handling repairs or replacing faulty parts rather than the homeowner.