When it comes to paying for your solar system, you have different options available. BrightEra Energy partners with some top financing companies in the country to offer you a wide range of payment options. We want to make it financially as easy as possible for you to go solar.
Solar system purchase vs. leases/Power Purchase Agreements (PPA), which is better for you?
Cash Purchase: If you are able to purchase your solar system with cash, this affects the overall price greatly. The reason is, you’re avoiding paying interest on a loan and that savings is staying in your pocket. This option will give you the fastest and greatest return on your investment. With this option, you own the system and may qualify for the Federal tax credit for solar, speak to your local financial advisor, which may reduce your overall out of pocket cost.
Loan Purchase: When you choose to take out a loan to purchase your solar system, the better your credit is, the more affordable rate you’ll get, just like with any loan. Finance companies have different standards, so if you are turned down by one company, this does not mean that you will not qualify for financing with a different company. You may be able to get financed even with a FICO score as low as 600, sometimes even less. Like a cash purchase, you own the solar system and may also qualify for tax credit. However, with a loan there are monthly payments, which may include a component of interest expense. There are 2 types of loans, secured and unsecured, the differences are noted in the chart below.
Lease/PPA: A lease or Power Purchase Agreement is a contract between a homeowner and a solar power company for the homeowner to pay a defined rate for electricity that is lower than what that homeowner would pay the utility company. You don’t save as much as you do with a purchased system, but if you can’t finance a solar system or purchase it outright, a lease/PPA is a great option that can still save you tens of thousands of dollars, depending on what rates you’re paying now and how much power you use.