Everything you need to know about solar panel loans, leases and purchases
When considering purchasing a solar panel system in Southern California, it is important to decide which payment option is best for you.
There are several options that you can consider depending on the amount you want to spend up front, and if you are willing to pay interest on the purchase.
Exactly like a home loan or a car loan, a solar loan is specifically for paying for adding solar to your home. You can begin receiving tax credits and incentives associated with solar. Many solar loans are now available via banks, credit unions, and solar companies themselves.
Ideal for: Homeowners who want to save a large payment up front and place $0 down, and who will be able to use the corresponding tax credits to offset the cost over time. Keep in mind that you will be paying additional interest on the loan over time, which increase the cost of the product.
Just like leasing a car – you pay a monthly fee and the solar leasing company installs your panels on the roof. The solar leasing company services them, and you receive the energy they produce while saving on your electric bill. Obviously, this option is best if you are planning to stay for a medium amount of time in one home to reap the full benefits. Leasing also takes away the worry of any damage or problems with the system as the company services the panels regularly.
Ideal for: Homeowners who want to go solar with $0 money down and as little hassle as possible. Also good to let someone else manage the solar panels maintenance.
Solar PPAs (Power Purchase Agreements)
A Power Purchase Agreement is where you pay for the power your panels produce each month from a solar company, just like your regular utility contract. Usually, this is at a reduced price for the length of the contract. A solar company installs and services the panels. So essentially you are paying a reduced rate for electrical power, as well as adding to the environmental benefits of solar.
Ideal for: Homeowners who would want to benefit from the power coming off the panels, and saving money due to the discounted power rates. In most cases, the final savings are typically equivalent to a lease option but could vary if you have exceptionally sunny or cloudy days.
Solar Cash Purchases
A cash purchase is where you pay for the whole solar unit and installation upfront. The clear benefit is that you own the system outright, which provides you with a free source of electricity and considerable utility savings over time. As well as this, you receive any tax credits and incentives associated with installing solar in your state. Adding solar panels to a property can also increase the overall value of the home.
Ideal for: Homeowners who have the funds ready, and are willing to pay for their system upfront in exchange for the highest savings in the long-run. A cash purchase is a long-term investment that definitely continues to pay for itself.
G C Electric Solar is a San Diego-based solar panel installer. We specialize in Solar Panel installation in Escondido, Temecula, Oceanside, Del Mar, and Poway. Our solar panel installers will ensure that your system is installed according to the highest quality of workmanship available in the industry. We custom design each project based on your needs and pay close attention to all details. Contact us today to find out how our Solar panel systems can work for you.