If you’re considering adding solar panels to your home or business, financing the investment is likely a top priority. The good news is that options abound: from paying with cash up-front to solar lease options and PPAs, each with its different benefits. Also, federal and state incentives are permitting these solar power options to become even more budget-friendly and are enacted to help offset installation costs. By the end of this blog, you will have a clear vision of how you can make solar power a smart investment in your financial and environmental future.
Cash Upfront for Solar Panels
One of the most straightforward and most cost-effective ways to pay for solar installation is paying cash upfront. It means covering the full cost of the solar panel system upfront, whereby you become the outright owner from day one.
- Paying Cash Upfront: Benefits accruing include no monthly payment, and that brings in the long-term cost savings. You are also able to apply for the federal solar Investment Tax Credit (ITC) upon purchasing your solar system outright.
- Full Control: You have full control over your solar panels as the system owner, adding or upgrading when and how you want.
Realistically, this option maximizes long-term savings and accelerates the payback period, given the huge investment it demands upfront. Paying upfront with cash can let you maximize energy savings along with maximizing the value of your solar system if you have liquid capital available.
Solar Financing Options
Sun Up Zero Down offers flexible solar financing with terms from 10 to 25 years. Financing will let you spread out the cost of your solar system, which makes it more accessible and budget-friendly.
Solar Financing Benefits
- No Large Upfront Payment: You can have all the benefits of solar energy with no large upfront payment.
- Lower Monthly Payments: We have a special arrangement in place to float the 30% solar tax credit, lowering your monthly payments from day one against the system’s after-tax cost.
- User-Friendly Terms: In the event you pay back the 30% tax credit during next year’s tax season, the lower payments remain. Otherwise, the tax credit gets re-amortized into your payments.
- We ensure at least 30 days of solar production after installation-that means you are satisfied before your first payment is due! Due to this fact, financing with Sun Up Zero Down is an uncomplicated way to start reaping the financial and energy savings benefits of solar power.
Solar Leases: A Budget-Friendly Option for Going Green
Solar leases cater to those who may want to go solar but without the system purchase involved. In a lease, you allow Sun Up Zero Down to let you use the solar system for a fixed period of time, say 20-25 years.
How Solar Leases Work
- No Upfront Costs: You pay nothing upfront but make a monthly lease payment for using the solar system.
- Included in your contract is maintenance whereby the solar company will take care of all maintenance and repairs so you will not have to bear extra costs.
- Ownership Options: You can purchase the system at the end of the lease or renew the lease and capture additional savings.
- You pay lower energy bills with the company owning the roof and its maintenance in a solar lease. It is an excellent option for homeowners in need of solar energy but who do not want to burden the ownership.
Solar Power Purchase Agreements (PPAs)
A power purchase agreement in solar is like a lease, except instead of a fixed monthly amount, you pay for the electricity the solar system has produced at a pre-set, discounted rate.
How PPAs Work
- No Upfront Costs: The solar company installs, owns, and operates the system on your property with no upfront costs.
- Lower Energy Rates: You pay only for the electricity produced; this is almost always less than what you currently pay through traditional utility rates.
- No Maintenance Costs: The solar company insures, operates, and repairs the system.
- A PPA is a great option for property owners looking to reduce their electricity bills without the ownership and maintenance of a solar system.
What’s the Difference Between Solar Leases and PPAs?
The main difference between solar leases and PPAs lies in the payment structure. With a solar lease, you pay a fixed monthly amount, regardless of how much electricity is generated. In contrast, a solar PPA charges you based on the amount of electricity produced each month, typically at a discounted rate. Both options offer the benefit of no upfront costs and lower energy bills, but the way you pay for the electricity varies.
Solar Incentives and Tax Credits
The best part is that solar can be even more affordable with federal and state incentives. There are several solar incentives available in New Jersey and Pennsylvania to help homeowners offset the cost of installing a solar panel system. Our team of solar experts will help determine if you are eligible for any rebates or incentives during the financing process.
Want to switch to solar? Let Sun Up Zero Down help you find the best payment option that will suit your budget.