Solar on Finance

Solar on Finance

‘Solar loans’ as they’re commonly called are a smart financing option if you want to own your system in the long run

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Solar on Finance

Photovoltaic solar panels can help free you from outrageous utility bills and will more than pay for themselves over time, but the upfront installation cost can be too much for some home and business owners. Some companies will offer to install free solar panels on your roof but you don’t own them and the company that installed them gets to dictate the terms of use. The good news is that there’s a middle ground between not having solar panels and free panels that come with sometimes less than wonderful conditions attached. That middle ground is called ‘solar on finance’.

How Solar on Finance Works

The most popular types of financing for photovoltaic (PV) solar panels are solar loans, solar leases and PPA’s or ‘power purchase agreements’.

Loans for Solar Panels

‘Solar loans’ as they’re commonly called are a smart financing option if you want to own your system in the long run. It’s possible to get no money down solar loans that allow you to finance the entire cost, but obviously the more you can put down the better, you can also look into our solar panel grants. Some things to consider when it comes to financing your solar panels include:

  • You’ll want to structure your loan so that the amount you save/earn from your new solar panels is greater than the monthly loan payment.
  • Even if you finance your solar panels you may save 1/3 on your electricity costs over the life of the loan.
  • Interest on your solar loan may be tax deductible.

Leases and Power Purchase Agreements (PPAs)

When you enter into a solar lease or PPA you are essentially renting your solar photovoltaic system from the installation company. You get benefits from having the solar panels on your home or business without having to pay for them. The catch is that you don’t actually own the panels and you don’t enjoy all the benefits you would if you owned them outright. Some things to consider when it comes to leasing or PPAs include:

  • There are no upfront costs associated with a lease or PPA.
  • It will be the responsibility of the 3rd party owner to maintain the solar panels.
  • You’ll still save an estimated 10 - 30% on your electric bill over the course of the lease.
  • The 3rd party owner will receive the Feed in Tariff and other benefits, while you receive a reduction in your electric bill.
  • You’ll have the option to purchase the solar panels outright at the end of your solar on finance lease or PPV agreement.
  • There are none of the risks associated with free solar panels offers.

Explore Your Options

It’s in your best interest to investigate all of your financing options when considering solar panels for your home or business. Since every situation has its own variables it’s not possible for us to state with certainty that this or that option would be best for you. You’ll need to do your own research. If you’d like to discuss your financing options with one of our solar energy experts feel free to give us a call at the number on our contact page.