IT'S EASIER THAN EVER FINANCIALLY TO SWITCH TO SOLAR
Even after government incentives, solar electricity systems require significant funding. Here is a list of the most proven methods of solar financing:
HOME EQUITY LINES OF CREDIT
Some homeowners are able to secure attractive financing terms via a line of credit or equivalent. Depending on your situation, an energy efficient mortgage (EEM) may be a good way to finance your solar panels.
PROPERTY ASSESSED CLEAN ENERGY | P.A.C.E.
P.A.C.E. programs such as the Sonoma County Energy Independence Program is a revolutionary solar financing method. The county will provide funding for the solar project and the end user pays the “loan” back through their property taxes. If the home is ever sold, the payments stay with the property just as any tax liability.
Solar leases work when the lease payment combined with the post-solar electric bill cost less than the original electric bill. Once the lease term is over, one has the option to renew or purchase the equipment at a reduced cost.
POWER PURCHASE AGREEMENTS | PPA
A Power Purchase Agreement (PPA) is similar to a solar lease except, instead of leasing the solar energy system, you purchase the power it produces. In practice, both residential PPAs and solar leases reduce (or in some cases eliminate) upfront costs associated with installing solar panels.
SOLAR RENEWABLE ENERGY CREDITS
This is a fairly new approach to solar financing that’s available in states where solar renewable energy credits (SRECs) are traded. In a nutshell, a financing company pays an upfront sum to you, the homeowner, to help cover the cost of solar panel installation. In exchange, you sign over the SRECs generated by your solar panels.