A solar system should be purchased based on the individual needs of the homeowner. A solar system can be purchased by cash, a home equity loan, or through a solar loan. Financing a solar system will lower the upfront cost and the monthly loan payments would be lower than the energy bill. In Detail Cash is king in solar installation; paying cash will decrease the number of years till the system has paid itself off and increases your ROI since you’re not paying interest on it. Second is taking a solar loan, competitive rates these days are between 1-3%. This will slightly eat into your ROI and how long the system pays for itself, but this is an ideal choice if you can’t or don’t want to put the money down. You’ll get your PV system, no more electric bills, and lock in your electric expenses for 25 years. Imagine what you’d pay over 25 years with an average CPI increase of 3% and electric rate hikes. A solar system would be a fraction of the total and you get to look cool and save the environment while you’re at it.