Solar Energy Advantages

Solar Power Home Costs have been out of reach for many people, the upfront costs high and financing options have been limited.  Additionally, taking on a home equity loan to fund a new solar project was a gamble if you didn’t stay in the home long enough to pay off the loan.  While an increase in property value as a results of solar energy would soften the financial hit, there is no guarantee that it would cover your investment.  These limitations have not gone unnoticed by the solar industry, solar companies and government agencies interested in expanding renewable energy.

Leasing/Renting Options

Some solar companies offer a leasing/renting option so your solar power home costs are manageable.  They can supply your home with solar power with no upfront fees.  You lock in lower electric rates and you are no longer dependent on fossil fuels.  Your fixed monthly fees are usually lower than your current electric bills from the start and since they are fixed, as electric bills raise your savings increase.

The companies will size, install and maintain your system.  If your system does not operate as expected, they will make the adjustments.  This is an option that makes it easy to transition to solar energy and with no issues.  If possible, compare several leasing options; each company has a different approach.

Power Purchase Agreements

Power Purchase Agreements are typically a vehicle used by businesses, but some solar companies offer this option to homeowners.  These agreements operate much as leasing agreements with no upfront fees and maintenance.

Innovative Loan Product

PACE (Property-Assessed Clean Energy) financing allows a property owner to acquire a loan from a city or municipality to finance a renewable energy project.  It is paid back through a property tax assessment and no upfront payments are required.  You then repay the loan in fixed payments over 20 years as part of your property tax bill. So the cost of your solar energy project stays with your home should you sell it before the loan is paid off.  You can also deduct the interest component of the solar financing tax just as you would a home equity line or home mortgage and take advantage of the 30% solar energy tax credit.  

PACE programs enable local governments to finance renewable energy and energy efficient projects on private property, including residential, commercial and industrial properties.  It’s a voluntary program and you only pay the additional annual special tax if you apply and install a solar energy project.  This is a relatively new program and is not available in all areas yet.  

If solar power home costs have been your biggest hurdle to transitioning to solar energy, leasing or the PACE financing program may by your answer.  Explore these two options and evaluate if now is time to go solar.