What is the Best Way to Finance Solar?
EnergyPal provides the best ways to finance solar with our industry leading solar lease, solar loan and cash purchase options. Think of solar financing like buying and financing a car, with the added benefit of solar panels saving you money on your energy bills now and in the future.
Last updated: August 1, 2024
At EnergyPal a common question we hear is, “How can I finance my solar panel system?“ Fortunately, there are financing options designed to suit your needs. Let's explore them:
1. Outright Purchase: Total Ownership and Maximum Benefits
Purchasing your solar panel system outright means you become the sole owner, reaping all the rewards such as financial incentives, renewable energy credits, and full electricity savings. It's a significant upfront investment, but the long-term benefits are well worth it.
2. Loans: Gradual Ownership with Immediate Rewards
If you can't cover the upfront cost, consider solar loans. They let you finance the system over time with favorable terms and low-interest rates. Start enjoying solar ownership without immediate financial strain.
3. Solar Leases: A Hassle-free Entry to Solar Power
With solar leases, you rent the system from a third party responsible for installation and maintenance. Pay a fixed monthly rent, and enjoy solar power benefits without a large upfront investment or ownership responsibilities.
4. Power Purchase Agreements (PPAs): Pay Only for What You Use
PPAs let you access solar power without upfront costs or ownership responsibilities. You pay only for the electricity your system produces, often at a lower rate than your local utili
Choosing the Right Option for You
Your choice depends on your financial situation and preferences:
Outright Purchase: Ideal if you have the capital, seek maximum savings, and prefer ownership.
Solar Loan: If you lack upfront funds but want ownership with monthly payments.
Solar Lease: Optimal if you prefer no upfront costs, long-term contracts, and immediate bill savings.
PPA: Great if you want no upfront costs, a long-term agreement, and a pay-as-you-go model.
A Brighter, Greener Future with Solar Power
Switching to solar offers substantial savings and environmental benefits. Each financing option, whether outright purchase, loan, lease, or PPA, has unique advantages. Choose the one that aligns with your financial capacity and lifestyle needs. Remember, solar financing isn't just about today; it's an investment in a sustainable future. Solar systems last 25-30 years and often pay for themselves in energy savings.
Curious about financing options? Connect with EnergyPal today to explore which one suits you best: energypal.com/getstarted.
Think of solar financing like buying and financing a car, with the added benefit of solar panels saving you money on your energy bills now and in the future. EnergyPal provides the best ways to finance solar with our industry leading solar lease, solar loan and cash purchase options.
There are 3 ways to go solar: you can buy your solar system outright, secure a loan to pay for it or choose a leasing program. Whichever option you choose, solar panels can lower your price for home energy and put more money back in your pocket. Our Energy Advisors will help you understand and choose the best option, here's how they compare:
Solar Buy
- Highest Return-On-Investment
- Reduce Bills to Essentially $0
- Increases Home Value
Buying Solar Outright: Homeowners with higher taxes often pay for their solar all up front and have the greatest return-on-investment over the lifetime of the system. With a cash buy, the homeowner can claim all tax credits and rebates, avoid financing charges, and directly benefit from the savings on their electric bills. We have customers that have essentially no electric bills from the day they install solar. We offer premium products at great cash prices.
Solar Loan
- No Upfront Cost
- Own Your System
- Increases Home Value
Solar Loan Financing: Using a solar loan helps you save and own your own solar since our financiers pay the upfront costs for your solar system (just like a car loan). Homes with solar systems are worth more because they're less expensive to operate. Depending on the solar loan you choose you can save more each month or finish your financing sooner. Our experts will help you secure the best rates and terms to meet your needs. Ask us about our latest offerings.
Solar Lease
- $0 Down
- Full Maintenance
- Pay Less Monthly
- Guaranteed Rates
Solar Leasing: Leasing solar panels is an easy and affordable way to go solar. There is no upfront cost, known as $0 down solar financing, all of the installation & maintenance is taken care of, and your home is credited with the energy the solar panels produce. You simply pay a fixed monthly payment and save each month versus your current electric bill. The solar power production and lower electric rate are guaranteed.
All of our products come with service and warranties.
Here’s a full breakdown of the financing options for solar:
Solar Financing Options
| Feature | Solar Buy | Solar Loan | Solar Lease |
|---|---|---|---|
| Upfront Investment | High (also highest ROI) | Low (No upfront cost) | $0 Down (No upfront cost) |
| Ownership | Immediate ownership | Ownership after loan payoff | Leased system |
| Return-On-Investment | Highest ROI over time | Positive ROI over time | Positive ROI over time |
| Energy Bill Reduction | Reduce bills to essentially $0 | Significant reduction | Significant reduction |
| Home Value Increase | Increases home value | Increases home value | Increases home value |
| Tax Credits and Rebates | Available for homeowners | Available for homeowners | Available for leasing company (savings passed on to homeowner) |
| Monthly Payments | None | Loan payments | Fixed lease payments |
| Energy Production | Own the energy produced | Own the energy produced | Credited for energy |
| Rate Guarantee | Electricity bills eliminated or significantly reduced | Varies by loan provider | Typically fixed electric rate |
| Product and Warranty | Premium products with warranties | Varies by loan provider | Warranted products |
Get A Free Home Solar Quote.
Common Solar Financing Questions Homeowners Ask:
Is financing solar worth it?
Financing solar can be a worthwhile investment for many homeowners. Solar panels can significantly reduce or even eliminate your electricity bills, providing substantial savings over their lifespan. They can also increase the value of your home. Financing options, such as loans or leases, make solar accessible without a large upfront payment. Government incentives and tax credits can further enhance the financial attractiveness of solar. The decision's worthiness depends on your individual circumstances, including your energy usage, location, incentives and the financing terms available to you.
What is the ideal solar financing choice?
The optimal solar financing option will align with your specific requirements. It's essential to thoroughly assess your financial situation, and energy consumption patterns. Securing the most favorable solar financing arrangement may entail conducting some additional research and comparison on the solar offers you have received, we can help with that.
How much does solar cost?
The cost of solar panels and their installation can vary widely depending on several factors, including:
System Size: The size of the solar panel system you need will significantly impact the cost. Larger systems cost more than smaller ones, but they can generate more electricity.
Location: Where you live plays a role in the cost of solar. Solar panel prices and the amount of sunlight your area receives affects the overall cost of solar.
Incentives and Rebates: Government incentives, tax credits, and rebates can lower the upfront cost of solar panels. Availability and amounts vary by location.
Equipment Quality: High-quality solar panels and components may cost more upfront but can offer better long-term performance and warranties. Learn more about the best home solar panels.
Installation Costs: Labor and solar installation costs can vary depending on the complexity of the installation, your roof's condition, and the installation company you choose.
Battery Storage: If you opt for battery storage to store excess energy, this will add to the overall cost. Here’s a guide on the best home batteries.
The average cost of a residential solar panel system in the United States is around $2.50 to $3.50 per watt.
What’s the average monthly payment for solar panels?
A solar lease typically falls within the monthly range of $50 to $250. This cost varies depending on several factors, such as the system's size and your geographical location. The key consideration is ensuring that your yearly lease payment, in conjunction with your utility expenses, is lower than your previous annual electricity costs. We can guide you through this process and help you maximize your savings. Fill in the form below for a free quote!