Solar Financing Options
Compared to the other types of solar financing available, a cash purchase is the quickest way for you to see monthly savings from your solar panels. This is because you will own your system outright by the time your system is activated, so get to enjoy the full value of your monthly electricity savings without a loan payment to manage.
While cash is the quickest path to savings, cash purchases require significant upfront capital, as you will be paying the full value of your system before it can begin generating power. We offer a four-part payment schedule for all cash purchases:
$1,000 is due at signing.
The remaining balance can be paid in equal thirds.
⅓ at Permits Received
⅓ at Installation Complete
⅓ at Permission to Operate
Since cash buyers own rather than lease their solar system, they may be eligible for financial incentives, such as the Residential Clean Energy Credit, which allows homeowners to deduct 30% of their solar system and installation costs from their total tax liability for the year of purchase. If your 30% credit is higher than your total tax liability for the year of purchase, the difference can be rolled over to subsequent years.
Not everyone is eligible to receive financial incentives and any questions regarding eligibility should be directed to your tax advisor.
Another financing option we offer is a solar loan. Compared to other loan types, solar loans are designed specifically for the financing of home solar energy systems. Such loans are typically 20 years long.
This extended term length is purposeful, as the loan period directly relates to the average lifespan of a solar panel system. Instead of paying a higher loan payment over a shorter period of time, the monthly payment is lower and extended, allowing customers to pay it off on their own time, whether that’s across the full life of the loan or within a shorter period.
Like a cash purchase, homeowners who choose to finance their solar energy system may be eligible for financial incentives to help offset the cost of their system. In fact, most solar loans assume that you are eligible for the 30% Residential Clean Energy Credit and apply the full value of your savings towards your solar loan in or prior to month 12 in order to maintain a fixed monthly payment for the lifetime of your loan.
Solar loans will automatically reamortize in month 13 to reflect the remaining principle. Your monthly loan payment for the remainder of the loan will be adjusted based on the remaining principal at that time.
If you pay more than approximately 30% of your total loan amount in or prior to month 12, your monthly payments for the remainder of the loan will be adjusted to a lower amount.
In order to avoid an increase in your monthly payment, you must make one or more voluntary prepayments equal to or bigger than 30% of your total loan amount within 12 months following your loan start date.
However, note that not everyone is eligible to receive financial incentives, including the Residential Clean Energy Credit. Any questions regarding eligibility should be directed to your tax advisor.