Switching to solar is an exciting step toward energy savings and sustainability, and there are great financing options available to make it accessible. Two of the most popular choices are solar loans and Power Purchase Agreements (PPAs)—both offering no upfront cost options and significant savings. The best choice depends on your personal goals, financial preferences, and long-term plans.
Solar Loans: Ownership & Long-Term Savings
A solar loan allows you to own your system while spreading the cost over time, similar to a home improvement loan. This option provides valuable financial incentives and greater long-term savings.
Key Benefits:
✔ You Own the System – As the owner, you qualify for valuable incentives like the federal Investment Tax Credit (ITC), rebates, and other savings that significantly reduce costs.
✔ Flexible Payment Plans – Companies like Solar Me offer solar loans through banks like FiBank, with terms ranging from 7 to 25 years and fast approvals.
✔ Increased Home Value – Owning a solar system can boost your property’s value, making it a smart investment if you plan to sell in the future.
Considerations:
▪ Loan Repayments – While there’s no upfront cost, you’ll have monthly payments, and a good credit score may be needed for the best terms.
▪ Maintenance Responsibility – Since you own the system, upkeep is your responsibility, though warranties can help cover potential costs.
Power Purchase Agreements (PPAs): Easy & Maintenance-Free
A PPA lets you go solar with little to no upfront investment. A third-party provider installs, owns, and maintains the system, and you simply pay for the electricity it generates at a lower fixed rate than your utility.
Key Benefits:
✔ No Upfront Costs – Start saving on energy immediately without a large initial investment.
✔ No Maintenance Required – The provider takes care of all system maintenance and repairs.
✔ Predictable Energy Costs – Lock in a set rate for solar power, helping to protect against rising utility prices.
Considerations:
▪ No Ownership Benefits – Since you don’t own the system, you won’t receive tax credits or rebates.
▪ Long-Term Agreement – PPAs typically come with multi-year contracts, and transferring them when selling your home may require extra steps.
▪ Savings May Be Lower – While you’ll save on energy costs, the system owner retains some financial benefits.
Which Option is Best for You?
✔ Choose a Solar Loan if you want to own your system, maximize incentives, and enjoy greater long-term savings.
✔ Choose a PPA if you prefer low upfront costs, want a hassle-free experience, and are comfortable with a long-term agreement.
Both options provide a cost-effective path to solar energy, so the right choice comes down to your goals and financial preferences. If you’re unsure which is best for you, Solar Me’s team can help guide you to the ideal solution for your home or business.
