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: July 1, 2024

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

FeatureSolar BuySolar LoanSolar Lease
Upfront InvestmentHigh (also highest ROI)Low (No upfront cost)$0 Down (No upfront cost)
OwnershipImmediate ownershipOwnership after loan payoffLeased system
Return-On-InvestmentHighest ROI over timePositive ROI over timePositive ROI over time
Energy Bill ReductionReduce bills to essentially $0Significant reductionSignificant reduction
Home Value IncreaseIncreases home valueIncreases home valueIncreases home value
Tax Credits and RebatesAvailable for homeownersAvailable for homeownersAvailable for leasing company (savings passed on to homeowner)
Monthly PaymentsNoneLoan paymentsFixed lease payments
Energy ProductionOwn the energy producedOwn the energy producedCredited for energy
Rate GuaranteeElectricity bills eliminated or significantly reducedVaries by loan providerTypically fixed electric rate
Product and WarrantyPremium products with warrantiesVaries by loan providerWarranted products

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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!

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