The sun’s energy is free, but capturing and converting it into electricity through solar panels does come with an upfront cost. The good news is that there’s a wide range of solar panel financing options available to suit every budget. In this blog post, we’ll delve into the various flexible financing plans that make it easier than ever for homeowners to embrace solar energy without breaking the bank.

 

Own Your Solar Panels: Cash Purchase
The simplest financing option is an outright cash purchase. If you have the funds available, buying your solar panels upfront can lead to the highest long-term savings. You’ll also benefit from the federal Investment Tax Credit (ITC), which can offset a significant portion of the upfront cost.

Solar Loans: Financing Your Investment
For those who want to own their solar panels but prefer to spread out the cost, solar loans are an attractive option. Solar loans offer fixed interest rates and terms that can fit your budget, allowing you to enjoy immediate energy savings while paying off the loan over time.

Solar Leases: No Upfront Cost
Solar leases, also known as solar power purchase agreements (PPAs), are ideal for homeowners who want to go solar without an initial investment. With a solar lease, you pay a fixed monthly amount for the electricity your panels generate, often at a lower rate than your current utility bill.

Power Purchase Agreements (PPAs): Pay for Performance
PPAs work similarly to leases but are designed to provide homeowners with electricity at a predetermined rate. You only pay for the power your solar panels produce, making it a performance-based financing option.

Community Solar: Shared Savings
Community solar allows you to invest in a shared solar array located off-site, often within your community. This can be an excellent option if you can’t install solar panels on your property. You receive credits for the energy your share of the array generates, leading to reduced electricity bills.

Property Assessed Clean Energy (PACE) Financing
PACE financing allows homeowners to borrow funds for energy-efficient home improvements, including solar panels. The loan is repaid through property tax assessments over a set period, making it an option for those concerned about credit checks.

Green Mortgages: Solar as Part of Your Home Loan
Some mortgage lenders offer green mortgages that include the cost of solar panels in your home loan. This allows you to spread out the cost over the life of your mortgage, reducing the impact on your monthly budget.