In the world of home improvement and financing, there is a lot of misinformation out there. Making the switch to solar is no different. In the past ten years, the solar industry has come a long way in eliminating all of the barriers that once prevented homeowners from making the right choice to go Green while managing their expenses. Incredible demand and advancements in technology have brought down the cost of solar and have made it a not only a viable but cost-effective option for the vast majority of homeowners.
So which plan is best for you when it comes to paying for your solar panels and installation?
Below are three ways to finance your solar system:
Purchasing your solar system is the best option for homeowners that want to maximize the return on their investment. By owning your system, as opposed to leasing it, you can take full advantage of the financial benefits along with the numerous tax benefits and incentives. With your purchase, you are making the investment upfront to essentially eliminate your utility bill. For a typical 6.5 kW residential installation, this would mean full system payback in 3 years and $38,000 in 20-year benefits. For home owners interested in potentially selling their home, installing solar will also significantly increase the value of the property.
When you don’t have funds available to pay for your system upfront, a solar loan is an easy way to go solar with $0 money down. There are many options available, but the right loan should provide a lower monthly cost versus your current utility bill. Think of it as replacing your utility bill with the loan payment, achieving guaranteed savings as a result. At Evergreen Solar, we have handpicked our financial partners to offer this savings guarantee. We calculate your monthly payment based on your solar production, usage history, and utility rate to ensure that you pay less than before.
PPA (Power Purchase Agreement)
For homeowners that want to have 100% of the worry taken off of their hands, a PPA offers the ability to lease your solar system and leave ownership to the installer. PPAs have grown in popularity because of their easy, no hassle application. By leasing your solar panels, the solar provider fully owns your panels and sells the power produced back to the you at an agreed upon rate. At Evergreen Solar, our PPA option comes with our Price Protection Guarantee, which guarantees your payments are lower than your current bill and are far below expected utility price increases.
Which Option Do I Go With?
Given all the options available, it’s ultimately up to the homeowner to decide which option is best for them and their family. It is important to evaluate all three options and weigh the short, mid, and long term savings. Perhaps the best part of going solar, and the reason over 27.4 GW (Giga Watts) were installed in 2015—enough to power over 5.4 Million American homes!—is that it’s not just about saving the planet, which of course is our shared goal; it is the vast financing options and savings opportunities available to each and every solar customer.
Request your free proposal today and see the savings!