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A Buyer's Guide to Financing Your Solar Panels

It is imperative to receive numerous quotes when you are making any large financial decision to ensure that you are making the best choice. Purchasing Solar panels is a commitment that requires some research ahead of time to maximize your return on your investment.

A Buyer's Guide to Financing Your Solar Panels

There are many experienced and educated solar installation teams willing to help you make this ever important energy transition. Contacting local companies in your area will offer you a chance to see a variety of price points and what every company offers.

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Options for Every Budget

A reputable solar company will help you make these energy adjustments one step at a time. Financing options and different packages are available to customize your solar needs. Regardless if you want to help the planet, incorporate some solar energy solutions into your residential and commercial environments or realize your financial returns, there are plenty of avenues to explore.

Leasing Solar Panels Vs. Purchasing Solar Panels

By completing a PPA or Solar Lease, you end up renting the solar system and panels from the solar company who is providing the service. Some individuals prefer to opt for a solar loan; enabling them to own and install the system themselves. Leasing or loaning your solar system depends on your financial goals, preferences and requirements.

Zero Down PPAs or Solar Leases and Solar Loans

Many solar companies are offering $0 down to help customers enjoy immediate savings. The PPA or lease will be less than your current utility bill, resulting in zero cash leaving your pocket. Generally, solar leases offer less monthly savings when compared to a solar loan. Residential solar loans are commonly paid off from seven to fifteen years. Leases typically require regular payments during the entire length of the agreement. Whether you prefer to lease or loan your solar panels will depend on your long term financial goals and the details of your individual situation.

Financial Incentives and ITC

There are a variety of incentives and rebates offered by different cities for those who are switching to solar. The SREC or Solar Renewable Energy Certificate is one such option. You may be eligible to deduct the interest paid out on secured loans on your taxes depending on where you reside as well. Remember, any ITC or Solar Investment Tax Credit will only be eligible for the owners of the solar panels; therefore, leasing parties may not realize any financial benefit. The ITC is equal to 30 percent of the system; quite significant.

What Do Monthly Payments Look Like?

Of course, every company will have their own bottom line that directly relates to your own. Another reason why multiple quotes, finding out who includes service, how their reputation and response time is are vital factors to ensuring the best outcome possible.

A 20 to 25 year term is standard when dealing PPAs and solar leases. Loans on the otherhand are often amortized from 5 years to 20 years. Many companies rely on a pre-determined annual rate increasing from one to three percent each year for solar leasing options. Solar loans often work with fixed monthly payments. Whether your loan is unsecured or secured will affect your final numbers. Generally, a solar loan over 20 years would likely result in payments lower in comparison to a solar lease of the same time.

Maintenance Considerations

Typically, maintenance for a solar system is fairly low. Many reputable solar panel brands come with a 25 year warranty. Numerous inverters on the market offer a 10 year to 25 year warranty. Installation is commonly covered by a warranty from the solar installation company.

Leasing options commonly come with a service program to ensure that the company who owns the photovoltaic systems covers any maintenance concerns that may arise over the term. However, if you have taken out a solar loan and own your system outright, you will of course be responsible to conduct your own maintenance. Either way, you can feel great knowing that you are drastically reducing your carbon footprint and helping the planet breathe a little easier!

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