Today we will be discussing the three forms of financing that are available for solar. Those include power purchase agreements, cash purchases, and zero-down financing. This is an important topic for those who are considering solar and want to explore the different options available to you.
Power Purchase Agreements
The first financing option for solar is a power purchase agreement or PPA. This type of agreement is a contract between you and a Solar Company where you agree to purchase the energy produced by a solar system installed on your property. With this type of agreement, you don’t have to worry about the upfront costs of purchasing and installing the system, instead, you pay a fixed rate for the energy that is produced by the system. This rate is typically lower than the cost of energy from your local utility company which can help you save money over time. In addition, some power purchase agreements include a maintenance plan which ensures that the system is well-maintained and running at its optimal capacity. This can help you save even more money in the long run by ensuring your system is working at its best.
The second financing option for solar is a cash purchase. This is when you purchase the solar system outright with cash. This option requires the most upfront cost but it also gives you the most control over your system. You can choose the size of your system and the type of equipment you want to use. You also don’t have to worry about any long-term contracts or maintenance plans.
The downside to a cash purchase is that it requires a large upfront investment. This may not be feasible for everyone especially those on a budget. However, if you can’t afford it a cash purchase can save you money in the long run by eliminating the need for a long-term contract or maintenance plan.
Zero Down Financing
The third and final option for financing solar is zero down financing. This type of financing allows you to purchase a solar system without having to make any upfront payments. Instead, you make monthly payments over a period of time typically between 5 and 20 years. The benefit of zero-down financing is that it makes solar more accessible for those who don’t have the funds to make a large upfront investment. The downside to zero-down financing is that it typically has a higher interest rate than other
financing options. This means that in the long run, you may end up paying more for your solar system than you would with a cash purchase or power purchase agreement. However, if you can’t afford the upfront cost of a cash purchase, zero-down financing can help you get the system you want while still saving money on your energy bills.
In conclusion, there are three financing options available for solar: Power Purchase Agreements, Cash Purchases, and Zero Down Financing. Each option has its own pros and cons and it’s important to weigh them carefully before making a decision. We hope this article has helped you better understand the different financing options available for solar and how they can help you save money on your energy bills.
Contact us today so we can explore which financing option would be right for you!