Buying your solar energy system outright is often considered the best option as it offers you the most benefits in terms of energy bill savings and solar incentives. However, a solar energy system is by no means cheap, and this can be a hindrance to many interested homeowners.
Fortunately, there are a few home solar financing options to help you overcome this:
Solar Loans
Many solar financing companies provide zero down loans at very low interest rates. With solar loans, you get to own the system and benefit from the tax credits and incentives.
Solar Leases and Power Purchase Agreements (PPAs)
This is the same as renting the solar system. After signing a contract with the solar leasing company, you will be entitled to use the system. Still, you won’t own it, meaning you aren’t entitled to tax benefits and other incentives.
In the long-term, you will achieve much lower energy cost savings compared to buying with cash or through a loan. Perhaps the only advantage is that you don’t have to deal with the upfront and maintenance costs.