Because solar home electric systems are a big investment, not everyone pays cash. There are a range of popular solar financing options, many of which are available through our EnergySage network of trusted solar installation partners. If you’ve got any questions, don’t hesitate to contact us -- we love hearing from homeowners with an interest in solar power!
- Home equity loan - Some homeowners are able to secure attractive financing terms via a line of credit or equivalent. Depending on your situation, an energy efficient mortgage (EEM) may be a good way to finance your solar panels.
- Solar lease - A growing number of homeowners are choosing to bankroll their solar home energy system with a solar lease. It works because the monthly lease payment and the post-solar electric bill are lower than the pre-solar bill, which saves you, the homeowner, money.
- Power purchase agreement - A power purchase agreement (PPA) is a little like a solar lease except, instead of leasing the panels, you buy the electricity they generate. In practice, both residential PPAs and solar leases reduce (or in some cases eliminate) upfront costs associated with installing solar panels.
- Solar renewable energy credits (SRECS)- This is a fairly new approach to solar financing that’s available in states where solar renewable energy credits (SRECs) are traded. In a nutshell, a financing company pays an upfront sum to you, the homeowner, to help cover the cost of solar panel installation. In exchange, you sign over the SRECs generated by your solar panels.
- Local loans - Some states, municipalities and utilities offer solar loans to homowners who install solar panels, so be sure to ask your installer about these options, too.
- PACE Financing: Property Assessed Clean Energy financing is a way to finance a solar system or energy efficiency upgrades through your local municipality by getting a loan upfront and adding the repayment to your annual property tax assessment.
Other third-party options - Many solar manufacturers and solar installation firms provide financing options that are tailored to meet their customers’ need. When it’s time to get a solar quote, be sure to ask about what options may be available to you.
How to Pay for Your Solar Energy System