With our leasing option, you pay a fixed monthly price for use of the system. You have the option of slightly increasing annual payments so as to take advantage of inflation to see the most savings. The normal length of a lease is 20 years. At the end of the lease you can either renew the lease, buy out of the lease, or simply remove the system from your property. During the term of the lease the installation company is responsible for the equipment and provide a product guarantee.
With the Power Purchase Agreement (PPA) you agree to purchase the electricity produced by the system. The advantage can be that during the winter, when there is less sunlight and less electricity demand, you pay less. Similar to the leasing option, the installation company is responsible for both maintaining the system and for providing a production guarantee.
The loan option is one of the most popular financing options. There are several benefits of this type of financing. Solar loans do not have pre-payment penalties, can be paid down faster, and add to the equity of your home. Solar loans often require paying the Federal Tax Credit back to the loan company within a time frame of a year to a year and a half. Most loans are just like auto loans in the sense that you are responsible for maintaining the system, but with no moving parts, there isn’t much that can go wrong.
Loans usually have terms of 12, 20, or even 30 years and do not typically have an annual escalator.