Recent industry developments have allowed the cost of solar power to come way down. Federal, state, and local incentives have increased, lowering the payback period dramatically. Additionally, we as a company have come up with new and better ways to help homeowners and businesses finance their solar installation projects.

Home owners and businesses essentially have various options when it comes to financing a solar project. When making a solar decision it’s important to understand the different ways to go so solar. You could either pay cash, take out a home equity loan, or refinance your mortgage.  There are also other options like financing the project through our company, leasing or PPA.

Cash

Cash is king, and paying cash out of pocket is an excellent way to go solar. It lets you maximize your return on investment by avoiding any interest or administrative fees associated with other financing methods.

This allows the system to pay for itself sooner, saving you money. Additionally, you own the solar photovoltaic system outright, adding considerable enhancement to the value of your home.

Home Equity Loan

A home equity loan (HEL) is a loan in which a homeowner is able to borrow money by using the equity in their home as collateral. Equity refers to the difference between the home’s fair market value and the outstanding balance of all loans on the property.
 Home equity loans are easy to get and require a good credit history. They are secured loans as collateral, in this case the equity in your home, ensures that the bank will be able to regain some of their loses in case the borrower end up defaulting.

 In some cases it is possible to deduct the interest from one’s personal income taxes, thereby reducing the interest or making the loan interest free. Additionally, the loan pays cash upfront in one lump sum, allowing you to buy the solar photovoltaic system outright. Owning the system adds considerable value to your home. 

However, there can be many administrative fees associated with securing a home equity loan. Additionally, you have to use the equity you have secured in your home as collateral.

 Refinancing Your Mortgage

Refinancing your mortgage is a process in which the outstanding debt on your current mortgage is paid off by a new mortgage loan, typically at more desirable terms. Better terms may become available due to changes in the economy or increases in your credit score. In our case refinancing is done to raise additional money to buy a solar photovoltaic system, but can be done for many other reasons: altering the duration of the mortgage, reducing payment size, or consolidating debt.

Refinancing your mortgage is common and needs be carefully planned out. In certain instances, fees can wipe out any potential savings. Typically it is only used as a means to raise money if other benefits can be gained from altering the terms of your mortgage.

By raising money through a mortgage, the borrower can take advantage of tax breaks that are not available for other types of loans. Additionally, the loan pays cash upfront in one lump sum, allowing you to buy the solar photovoltaic system outright. Owning the system adds considerable value to your home.

However, there are many administrative fees associated with refinancing your mortgage. Additionally, you have to use your home as collateral.

Other Solar Loan Option

Homeowners who do not want to use any of the loan options discussed above  may still be eligible for loans designed specifically for home solar installations. We’ve teamed up with the top solar loan providers to offer home and business owners loan products with terms of up to 20 years, including options to go solar for zero money down that allow you to start saving on your electricity bill from day one.

Solar loans are often the best deal for customers that wish to eliminate their immediate out-of-pocket payments while maximizing their long-term savings from solar, since loans allow you to lock in low monthly payments and claim benefits from tax credits and other government incentives.
We can package a great deal of zero dollar down payment for Solar Ownership

• Rates as low as 2.99% 
• $0 Down
• Own your power
• Increased home equity value

Check out Solar Incentives, Rebates and Tax Credits.

Power Purchase Agreement (PPA)

Finally, another popular way to go solar is with a power purchase agreement (PPA), also known as a solar lease. Under this model, the solar system on your roof is actually owned by one of our third-party financing partners, who then provide you with solar power at a lower cost than your utility rates over a 20-year contract. You can either opt to go solar for zero money down or make a small up-front payment in order to reduce your monthly energy costs further.
In many ways, this leasing model is similar to a solar loan, since you can realize savings from day one with little or no up-front costs. However, much like leasing a car or renting a home, your benefits over the life of your solar investment will be less than if you own your system outright. On the plus side, leases are often easier to qualify for than loans, making them the best option for many customers.

With our PPA you have the following:

• $0 Down
• Lock in energy rates
• No maintenance, no risk
• 30-50% instant savings on energy costs

Things to Consider When You Lease Your Solar Panels

• Incentives go to the solar leasing company and not you.
• If you decide to move, the new buyer must agree to take over the payments and terms of your lease.
• Once you’ve come to the end of your lease you will not own the solar power system.
• You will never eliminate your utility bill no matter how much power your solar system produces.
• You will not be allowed to upgrade or modify the solar power system for the entire term of the lease contract.

Check out Solar Incentives, Rebates and Tax Credits.