Great Options to Finance your Solar System

Written by U.S.SolarEnergy

U.S. Solar Energy provides a few great options for financing your solar system, all designed to save money and fit your family’s budget. They include the solar loan, a solar lease, and the upfront cash purchase of the system.

Solar Loan:

A solar loan is the most popular way for homeowners to purchase a solar system. Solar loans work much like a loan for a home or car: after selecting your solar panel type, you take out a loan and repay the borrowed money plus interest over a set amount of time. It allows you to go solar with zero money down and qualify for all federal, state, and local financial incentives.

In most cases, the monthly cost of the solar loan is less than what you were paying the electric company, so you see immediate monthly savings. Also, our solar loans cover 100% of the installation costs. Most homeowners decide to pay a portion of the loan with the 30% solar tax credit provided by the recently passed Inflation Reduction Act.

Solar Lease and PPA:

A solar lease allows you to rent your solar system for a monthly payment, similar to renting a home or apartment. With a solar PPA (Power Purchase Agreement), you agree to purchase the electricity generated by a solar system installed at your home instead of paying to rent the system. With a lease or PPA structure, you make one low monthly payment over 25 years and don’t have to pay a large downpayment for your system to start powering your home.

If you lease your system, you are not eligible for federal, state, and local financial incentives associated with solar. In that regard, it is an excellent option for homeowners with insufficient tax liability to take advantage of the incentives and still want to reduce their monthly electric bill. Suppose you choose to install your solar system with a lease or solar PPA, but later decide you want to purchase your solar panels outright. In that case, we can work out an early buyout payment.

Upfront Purchase of a Solar System:

Some homeowners immediately pay the total upfront cost of their solar panels to maximize their long-term savings. Your exact monthly and annual savings depends on where you live and how much you currently pay for each unit of electricity. But purchasing your system upfront usually equates to the highest savings over the system’s lifespan.

Here at U.S. Solar Energy, we will explain all your options to make your solar transition as smooth as possible. Once we find a payment option that fits your goals, you can relax and enjoy your energy savings.