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Solar Financing Options

Which Works Best for You: Cash, PPA, Lease or Loan?

Cash


Investing your money into a solar project not only helps reduce your monthly electric bill, but it’s also a smart investment.  Many homeowners experience returns that outpace the historical stock market. With a cash purchase, you can enjoy all the benefits of ownership and keep the 30% federal ITC (Investment Tax Credit) as well as any state, local or utility incentives when you file your taxes.  When you pay cash, you also add to the resale value of your house.

PPA


A PPA (Power Purchasing Agreement)  means your solar company owns the panels on your roof, and you pay for the electricity the solar company produces. With a PPA, your solar company essentially becomes a second utility provider.  The advantage is that the solar company sells you electricity at a lower rate than the fossil fuel electricity you have been buying from your electric company.  Plus,  you have no upfront outlay of cash.

Lease


Installing your solar system by means of a lease agreement is like renting your panels for a set monthly payment while getting all the energy they produce. A typical solar lease comes with energy production guarantees that guarantee a minimum system output of kWh. Leasing a solar system is no different than leasing a car.  You are renting a piece of equipment for a specific amount per month for a term (usually 20 years). With leased systems the system owner takes the 30% federal tax credit but passes some of the savings onto the homeowner.

Loan


Solar loans are great for customers who want to take advantage of all  of the benefits of solar ownership but don’t necessarily want to pay out all the upfront money like what’s required in a cash purchase. As solar has become more popular over the past few years, so has availability of solar loans. The reason a solar loan works well is that you don’t have to put any money down, but you still get all of the incentives that go along with buying solar. You’ll get the 30% federal tax credit and your energy bill savings will start right away. Inti Solar currently offers 10, 12, 15 & 20 year loans.

PACE Programs


Property Assessed Clean Energy PACE programs help home and business owners pay for the upfront costs of green initiatives, such as solar panels, which the property owner then pays back by increasing property taxes by a set rate for an agree upon term ranging from 5–25 years. This allows property owners to begin saving on energy costs while they are paying for their solar panels. This usually means that property owners have net gains even with increased property tax. In areas with PACE legislation in place, governments offer a specific bond to investors or in the case of the open-market model, private lenders provide financing to the building owners to put towards an energy retrofit. The loans are repaid over the selected term (over the course of somewhere between 5 and 25 years) via an annual assessment on their property tax bill. PACE bonds can be municipal financing districts, state agencies or finance companies and the proceeds can be used to retrofit both commercial and residential properties. One of the most notable characteristics of PACE programs is that the loan is attached to the property rather than an individual.

 Call Us at Inti Solar


Now that you know the basics, why not call us at Inti Solar (844) 400-INTI for a free estimate?  Work with our local experts to determine which financing option works best for you and to find out exactly how much money you can expect to save with a solar installation at your house!