Choosing between Lease, Finance, or PPA
Google has plenty of information on these options, but here's a simple breakdown to make it easier to understand. We encourage you to do your own research so you can feel confident in your decision.
| Options | Benefits | Drawbacks |
|---|---|---|
| Leasing | No upfront cost and little to no maintenance or repair responsibility (aside from basic panel cleaning). | No access to the 30% tax credit, and you will still have a monthly bill |
| Finance | Qualifies for the 30% federal tax credit and can significantly reduce or eliminate your electric bill. | Requires upfront investment or financing. You own the system and are responsible for maintenance, though most contractors provide workmanship warranties. |
| PPA | A third-party provider supplies your electricity, often at a lower rate than your utility. | No access to the 30% tax credit, and you will still have a bill. Rates may increase over time. |
In most cases, financing allows you to take advantage of the full range of benefits, including tax credits and long-term savings. This helps reduce the overall cost of your system.
A good contractor will walk you through your options, estimate your payback period, and help you decide if going solar is the right choice for you.
Paying the Bill
That's alot to take in - now let's get back to what matters most: choosing the best option for you.
- Do nothing and keep paying your monthly utility bill
- Finance a solar system
- You remain subject to utility rates and future increases, with little control over your energy costs.
- If possible, take advantage of low or no-interest promotional financing.
- Compare loan options to secure the lowest interest rate available.
- Consider programs such as HERO or PACE if they fit your needs.
Review the numbers carefully - how much will you actually save, and what is the estimated payback period?
If you choose financing, make sure it fits comfortably within your budget. Some options may place a lien on your property, so its important to fully understand the terms.
Shop around and get multiple quotes. Do your research and make an informed decision.
Current Financial Options Offered
