Think Solar Is 'Free'? Here’s What They’re Not Telling You!
- Sol Power Solutions
- Mar 22
- 2 min read
Switching to solar power is a smart way to save money on electricity and increase your home’s value. But solar panels can be expensive upfront. Luckily, there are different ways to pay for them that make going solar easier. Here are the best ways to finance your solar system.
1. Pay with Cash: Best for Big Savings
Buying your solar system with cash gives you the most savings. You won’t have to pay interest or loan fees, and you’ll start saving on your electric bill right away. Plus, you can get the Federal Investment Tax Credit (ITC), which lets you deduct 30% of the system’s cost from your federal taxes.
2. Solar Loans: Pay Over Time
A solar loan helps you get solar panels with little or no money upfront. You make monthly payments over time, like a car loan. There are two main types:
Secured Solar Loans – You use something valuable (like your home) as collateral, which can get you a lower interest rate.
Unsecured Solar Loans – No collateral needed, but interest rates may be higher.
Many banks, credit unions, and solar companies offer solar loans. Shop around for the best deal.
3. Solar Leases: No Upfront Cost, But You Don’t Own
With a solar lease, a company installs solar panels on your home, and you pay a set monthly fee to use them. They take care of maintenance, so you don’t have to worry about repairs.
However, you won’t own the panels, so you won’t qualify for tax credits, and your long-term savings might be lower than if you bought them.
4. Power Purchase Agreements (PPA): Pay for Energy, Not Panels
A PPA is like a lease, but instead of paying to use the panels, you only pay for the electricity they produce—usually at a lower rate than your utility company. The solar provider installs and maintains the system for free. This option can reduce your monthly electric bill, but buying your system usually saves more in the long run.
5. Government and State Incentives: Extra Savings
In addition to the ITC, many states and cities offer solar rebates and incentives to help lower costs. Some states even offer property tax breaks for solar homes.
Which Solar Financing Option Is Best for You?
The right choice depends on your budget, long-term goals, and whether you want to own your solar system. If you’re ready to explore your options, contact Sol Power Solutions today for a free consultation.
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