A big concern for many homeowners interested in solar is figuring out how to pay for it. While the cost of solar has come down significantly over the years, the upfront investment can still feel overwhelming. The good news? There are multiple financing options available to make going solar affordable for nearly any budget. Here’s a quick look at the main ways to finance your solar system.

1. Cash Purchase: Maximizing Savings
Paying for your solar system upfront in cash provides the highest long-term savings, as you won’t be paying interest. A cash purchase also means you own the system outright, so you can benefit fully from tax incentives and net metering. If you’re looking for the best return on investment and have the funds available, this option is ideal.

2. Solar Loans: Own with Low Monthly Payments
For homeowners who want to own their system without the large upfront cost, solar loans are a popular choice. With competitive interest rates and flexible terms, solar loans make it possible to pay off your system over time while still benefiting from ownership perks like tax credits. Many solar loans are structured so that your monthly payments are similar to (or less than) your old electric bill.

3. Solar Leases: Pay for Solar Use, Not Ownership
A solar lease is a good option if you want the benefits of solar energy without owning the system. With a lease, you pay a monthly fee to use the energy the system generates. While you don’t own the panels and won’t benefit from tax incentives, leases typically come with little or no upfront cost, making it a budget-friendly choice.

4. Power Purchase Agreements (PPAs): Pay for Power Produced
With a PPA, you don’t pay for the solar panels themselves, but rather for the electricity they generate. This option is similar to a lease, but instead of a fixed monthly payment, you pay for each kilowatt-hour produced at a set rate. PPAs allow you to save on energy without a large investment, though you also won’t own the system.

5. Tax Incentives and Rebates: Reduce Your Cost
Don’t forget about federal, state, and local tax incentives! The federal Investment Tax Credit (ITC) currently allows you to deduct a percentage of your system cost from your taxes, and some states offer additional rebates. These incentives can significantly reduce the total cost of your system, regardless of how you choose to finance it.

Whether you’re looking to own your solar system outright or simply enjoy the benefits of clean energy without a big upfront investment, there’s a financing option for you. With various ways to pay for solar, going green has never been more accessible.

Interested in financing options for your solar project? Contact CJ Yamada at Solar In One to find the best solution for your budget and start saving on energy.