Financing Solar Panel Cost
Each of the financing options below for solar panel cost has pros and cons. However, the return on this investment for each will help you save money, which in turn, makes it easier to go solar. Specified terms for each of these investments will vary according to their prospective applicants. If you are interested in saving with solar, reach out to a representative today.
Making solar simple.
Option 1: Cash
This option is best for customers who can afford to pay off their solar system relatively quickly. It allows maximum savings with minimal paperwork. However, customers who prefer to spread their cost of going solar over a longer time may prefer our other options. Furthermore, eligibility is based on credit and income, and not all customers may qualify.
- Pros: No financing fees, minimal paperwork. Best Savings
- Cons: Must pay up front or at certain installation requirements
Option 2: Solar Loan
Homeowners looking to finance the solar panel cost over a longer time may be eligible for loans designed specifically for home solar installations. Summit teams up with the top solar loan providers to offer loan products with terms of up to 20 years. Loan options include zero money down and no upfront costs, allowing immediate saving on electricity bills.
Solar loans are often best for customers who wish to minimize short-term expenditures while maximizing long-term savings from solar. Loans allow you to lock in low monthly payments and claim benefits from tax credits and other government incentives. A study from the National Renewable Energy Laboratory estimates that loan-financed solar can save up to 30% more over the life of a solar panel than going solar via a power purchase agreement (PPA). Our loan providers offer workmanship warranties and real-time performance monitoring, so you can check your system and home energy usage.
- Pros: Spread solar costs over long term, greater savings than PPA
- Cons: Higher financing costs than “cash,” higher credit requirements than PPA
Option 3: Power Purchase Agreement (PPA)
Finally, another popular way to finance solar panel cost is with a Power Purchase Agreement, also known as a PPA. In this model, the solar panel system on your roof is owned by another partner, who then provides you with solar power at a lower cost than your utility rates over a 20-year contract.
Like a solar loan, in this leasing model you can realize savings from day one with little or no upfront costs. Much like leasing a car, the benefits over the life of your solar investment will be less than owning the system outright. On the plus side, PPA’s are often easier to qualify for than loans, making them the best option for many customers
- Pros: Easy approval, save from day one
- Cons: Lower lifetime savings compared to loans