How do I pay for my system?
So you’ve seen how much you can save with solar. You're also interested in your energy independence and helping the environment doesn’t hurt either. The biggest question you might have now is “how do I pay for my system?”. Let’s take a look at the four ways you can put solar on your roof today.
- CASH PURCHASE
The most simple: you pay the full system cost up front and get 30 years of self-supplied power. Every day you turn on the lights, you save. You are never subject to changes in energy costs and you own your system from Day 1.
- PPA (Power Purchase Agreement)
With this option, you install a system that is owned by a developer and you only pay for the electricity that is produced. The system is designed and installed at little to no cost to the homeowner and your electric bills are slightly lower than before solar. The biggest drawback is that you don’t own the system and PPA rates have potential to rise each year.
Just like a standard lease, you rent the solar array from the installer and make a fixed lease payment each month. Unlike a PPA, you can use all the power you produce. The biggest drawback is that you do not own your system and most lease rates will increase with the cost of energy.
This is the most popular option for homeowners right now because of the low-rate financing available in the solar space. Depending on your credit, you can finance for no money down at interest rates as low as 1.99%. After paying your system off with fixed monthly payments, you own your system. Your payments do not increase and your cost of energy is fixed. You start saving on Day 1 and your savings grow larger each year as the price of energy continues to rise each year.
What makes the most sense for you?
Be sure to explore these options with an installer to find a plan that suits your needs and budget. Now that you know more about paying for your system, let's take a look at what the process is like to put solar on your roof