There are four ways to finance a rooftop solar system, each with advantages and disadvantages:

1. PPA - Power Purchase Agreement

Pros

• No money out of pocket.

• Solar company pays for equipment, installation, and upkeep.

• 25-year guarantee on equipment and labor.

• Immediately lowers your electric bill.

• Low annual fixed-rate increase vs. high annual unknown utility company hikes.

Cons

• You are no longer required to pay any rate hikes the utility company decides to force on you. Oh wait…that’s a good thing. Sorry, no cons.

2. Lease

Pros

• All the pros of the PPA.

• For some individuals, there may be tax advantages to a Lease over a PPA.

• We run the numbers on both to help you determine which is best for you.

Cons

• See PPA.

3. Cash Purchase

Pros

• Over the life of the system, this will save homeowners the most money.

• Once the system is installed and operating, your electricity is essentially free for the life of the system.

• 30% rebate on the cost of the system from the Inflation Reduction Act.

Cons

• Most people do not have the $15k - $50k+ in cash readily available.

• Homeowner is responsible for maintenance and upkeep of system (Lifetime equipment and maintenance warranties are available and recommended).

4. Loan Purchase

Pros

• Over the life of the system, this will save homeowners the second-most money.

• Once the loan is paid off, all of your electricity is essentially free.

• 30% rebate on the cost of the system from the Inflation Reduction Act.

Cons

• Current high interest rates.

• Current high dealer fees/points.

• High monthly payments mean the average homeowner’s monthly electric payment will go up with a loan.

• Homeowner is responsible for maintenance and upkeep of system (Lifetime parts and maintenance warranties are available and recommended).