While the cost of home solar systems has decreased over the years, the total installation costs can still be prohibitive for many homeowners. Luckily, there are several solar financing options that make it easier to power your home using clean, renewable energy from the sun. Our team explains some of the most common solar financing options, and is standing by to answer any questions you may have. As you read below it is important to know that all these options are available at no upfront cost to customers with strong credit.
There are many different types of solar loans available, and if you have good credit, your options will be more plentiful. Certified solar installers offer loans to homeowners who are ready to have a home solar system, usually through a third party, similar to applying for a line of credit. When you apply for and receive a solar loan, you can claim the federal solar tax credit (that has just been increased to 30%), which makes this option very appealing to many homeowners.
Solar leases work similarly to car leases – you lease your home solar system from a solar provider and you make payments on your system for as long as you’re using it. At Green House Solar we are proud to lease the highest quality solar panels available on the market, and we’ve made home solar systems an affordable option for hundreds of families and businesses in New Jersey.
Solar Power Purchase Agreements (PPAs)
A Power Purchase Agreement (PPA) is a legal agreement you make with a certified solar supplier, and just as the name implies, you pay for the power. A solar installer pays for the cost of installing your home solar system, as well as any other associated costs, then they sell the energy back to you at a fixed rate. Homeowners can enjoy lower monthly energy costs without having to dig into their pockets to pay for the installation upfront.
Third-party Solar Panel Ownership
Third-party ownership of a home solar system allows you as a homeowner to circumvent the upfront installation costs. Instead, you’ll make monthly payments to the third-party, similar to making a car payment or a mortgage payment, and the third party will be held responsible for costs associated with repairs and maintenance.
For more information about which solar financing option is best for you, please contact our team at Green House Solar today.