Different customers have different financing needs. At Solare Energy, we provide a wide range of attractive financing options. We work with customers to help them understand the details of each financing option and help them select the best one for them.
Cash is the payment option that will typically provide the largest savings over the long term. You don't pay interest. You also own the solar system and will capture the electric bill savings for up to 40 years. Most customers that pay cash withdraw the funds from a savings account, a certificate of deposit, a brokerage account, or a 401k (It is always a good idea to consult with your financial advisor regarding the best source of cash).
Pre-Paid Purchase Power Agreement (PPA)
20 year power purchase agreement, where the homeowner is paying upfront for the electricity to be produced by the solar system. The system will be installed by Solare Energy and will be owned by the financing company who will take the higher commercial government incentives. Allows homeowners to go solar for less than buying system in cash and with full 20 year monitoring, maintenance and performance coverage. Flexible options at end of term: have financing company take the system away at no cost or buy the system at fair market value (expected to be $1 at end of term) and continue saving for another 15-20 years.
Home Equity Financing
$0 down home equity financing based on home equity line of credit with 20 year term (first 10 years interest only). Includes interest tax deduction benefit based on 37% marginal tax rate. Loan up to 80% of home value. Variable rate starting at 5.75% (Prime + 2.5%) for FICO 700-800. Higher rate for FICO 620-700. Other charges and conditions might apply.
$0 down unsecured loans. Up to $50,000. Fixed rate of 5.99% for 5 yrs, 6.99% for 10 yrs, 7.99% for 15 yrs for FICO 720 or above. Higher rate for FICO 650-719. Other charges and conditions might apply.
$0 down, 15 year system lease, with lease payment escalating 2.5% per year. After 15 year period, homeowner has option to renew lease in 5 year increments, buy system at fair market value, or have system removed at no cost.
Purchase Power Agreement (PPA)
$0 down, 20 year power purchase agreement, with first year rates $0.20 to $0.25 per kWh, escalating 2.9% per year. After 20 year period, homeowner has option to renew agreement, buy system at fair market value, or have system removed at no cost.
Same As Cash
No payments and no interest for 12 months. Typically used to finance the federal tax credit amount. If not paid within 12 months, APR as of May 2013 is 16.67%.
Financial Analysis (Example for a 4.84kW System)
Comparison of Financing Options (Example for a 4.84kW System)