Solar customers have multiple options when financing their solar system. How you decide to finance your solar panels is totally dependent on your individual situation. It can seem a bit overwhelming as they all can save you money. But to help in your decision process, here’s what you’ll gain from the below options.
Owning/Purchasing (CASH) – This allows you to capture more savings than any other financing method.
- Eligible for 30% Federal Tax Credit (you own the system)
- Increase market value of home
- Enjoy long term benefits of solar – free electricity
- ROI in 5-8 years (depending on system size)
- Eliminate or significantly reduce your electric bill
- Clean Solar 15 year production warranty
- Help avoid increase in energy costs
Traditional Loan – You can borrow money from a lender to install solar on your home without using an asset for collateral.
- No money down
- No prepayment penalties
- Eligible for 30% Federal Tax Credit (you own the system)
- Increase market value of home
- Clean Solar 15 year production guarantee
PACE (Property Assessed Clean Energy) Loan – You receive financing through your local city government to cover upfront costs and in return repay those costs as an assessment on your property tax. Along with everything in the traditional loan, PACE has some unique elements.
- Same as traditional loan
- Loan not based on FICO score
- Transferrable upon home sale
- No panel or inverter restrictions
- Interest incurred is tax deductible
Bottom Line – Compare your options when looking to install solar panels.
The beauty about these options is that as soon as your system is paid off, the energy your system generates is free. You want to make sure you make the best possible decision for you and your family. Any of the above options will allow you to pay less than you would to utilities. Clean Solar also offers Power Purchase Agreement (PPA) and leasing options.