Having a solar installation on your home or business can help you save a significant amount on your utility bills while producing clean energy. Although these installations typically come with a significant upfront cost if you are paying cash, there are ways to get started with no upfront cost. These options allow you to enjoy the benefits of going solar without having to worry about paying for it out of your pocket right away.
Benefits of Financing Your Solar Installation
Solar installations help homeowners offset their energy usage, resulting in much lower energy costs over the years. These installations are generally warrantied for 25 years and can last for up to 40 years, which makes them a smart investment in the long run. The higher cost of getting solar installations might be difficult to afford upfront, but solar financing offers a way to avoid this. With solar financing, you can have solar panels installed on your roof and begin to benefit from reduced energy costs rather than having to stay with your regular source of electricity. With this type of financing, you’ll be able to make small payments over a longer period of time instead of having to purchase your installation in one lump sum right away.
Zero Down Solar Installation Options
You can go solar without upfront payments in a couple of ways. Your main options for this are going with a purchase with Solar financing or doing a power purchase agreement (PPA). These options do not require any money upfront for your solar installation. However, there are important differences between these options that you should know about before deciding which one to choose.
Solar Financing Loans
With a solar loan, you can apply and usually get an approval in minutes. The solar company you are using generally has several options for you when it comes to solar financing. There are also programs that are run through your local county, and many solar companies can help you check into those too. When you have a solar loan, you’ll be able to make monthly payments on that loan, and in most cases those monthly payments are significantly less than you were paying for electricity through your utility company. Interest rates vary on these solar financing options. There is a lot of competition for your business which ends up helping you.
When you use solar financing to purchase your solar system you are entitled to receive the federal tax credit associated with going solar. 30% for 2019, 26% for 2020, 22% for 2021 and 20% for 2022.
Solar Leases and Power Purchase Agreements (PPAs)
With solar leases and solar power purchase agreements, the solar financing company covers the cost of your solar installation upfront. You then make small payments based on a predetermined price per kilowatt hour rate. This rate is generally a lot less than the current rates your utility provider is charging you for electricity. Most leases or PPA agreements are 20 or 25 years in length.
One of the biggest benefits is for those people that cannot take advantage of the federal tax credit. The lease or PPA company takes the tax credit and depreciation and passes the savings on to you in the form of lower rates for your power.
A secondary and equally great benefits of going with a solar lease or PPA is that the solar company usually takes care of repairs and maintenance since they technically own your solar installation. This means you are not expected to pay for the cost of routine maintenance or repairs, which can save you money. You’ll also be able to start saving on energy costs, resulting in much lower utility bills year after year.
If you’re not sure which zero down solar option is right for you, talk to one of our professional solar installers. You’ll learn more about your options, so you can decide which one works best for your situation. Keep in mind that no matter which option you choose, you’ll be saving money on your energy bills even if local electrical rates continue to rise over the years. If you seriously considering a solar installation for your home or business, start with a free no-obligation quote to learn about your options.