Solar Financing comes in many different packages.  To pick the best solar financing package for yourself, you need to evaluate the amount of cash you have on hand, what you want to do with that cash, and whether or not you need the tax credits that are available for a solar electric installation.

Here is a brief description of methods of solar financing.   There are basically three ways that you can purchase a solar electric system.  You can pay cash, you can take out a loan, or you can lease the system. 

If you have the money to spend, a cash purchase is the simplest and it makes the most sense.   When you pay cash for the system, you immediately eliminate your monthly electrical energy costs, forever.  This method  eliminates the need  for solar financing.   And when you consider that over the last 30 years, electricity costs have increased by an average of 6.7% per year, then your return on investment over 20 years can be up to 20%.  That is much better than a savings account or a CD.  Further, it is pretty clear that energy costs will continue to rise, making a solar electric system a far better investment than any stocks.

Another method of solar financing is to take out a loan.  There are secured loans (loans that use the equity in your home), or unsecured loans (or signature loans).  Availability of secured loans far exceeds the availability of unsecured loans.  Secure loans can be obtained from your own lender or credit lines, while unsecured loans are typically offered by the solar panel manufacturers.  In both cases, the monthly payment will be about the same amount as your current electrical bill payment.  However, at the end of the 10-15 year payment, you will be left without a loan payment, and without a monthly electric bill.   Solartronics can provide both secured and unsecured solar financing.

Last, we have a solar financing method that requires no money down, and a monthly payment that is typically about 30% less than your current monthly utility bill.   A third party will own the solar electric system on your roof, and they will produce electricity and sell it back to you at a fixed rate for the life of the lease, at a price that is far less than your utility company charges, especially over time.  This solar financing method offers a term of the lease that can be between 7 and 20 years.  At the end of the lease, you can purchase the system from the system owner for pennies.  After all, why would the lease company want to send labor to remove the solar electric system, which is now used equipment and not of any value to them.  Another reason a lease is a good form of solar financing is that the system owner (the other guy), is responsible for all of the system maintenance and repairs for the term of the lease.  In the end, the total of your lease payments is about equal to the price that you would have paid in cash up front, to own the solar electric system. In a solar lease however, you will not be able to use the tax credit or rebate at the time of the installation, since those perks go to the system owner.  Again, Solartronics offers this lease option of solar financing.

Solar financing comes in many forms.  There must be one that works for you.  We can help, call us at 818-889-0440 right now, and we will answer your questions.  Don’t forget that, on average, a solar electric system on your home will eliminate 300 tons of carbon from the atmosphere over 20 years!

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