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Compare Solar Loans VS Leasing PPA

You can finance or lease a solar panel system for your home. There are several options available to you. Lenders are often very willing to work with quality homeowners who improve the value of their homes with solar panels.

We recommend that you purchase and own your using cash or a simple loan to achieve the biggest financial benefits. Unless paid off quickly, we do not recommend using credit cards to pay for your installation due to the typically higher rates. The best rates and possible tax deductions are available when tapping the value in your home with refinancing or a home equity loan.

Some finance companies like SUNTRUST LIGHTSTREAM SOLAR LOAN will provide unsecured loans at competitive rates for amounts up to $100,000.

Our professional installers can help you with financing or leasing for your home solar panels. Click Here to find out about financing your solar panel system.

There are also home improvement loans backed by the federal government and insured by HUD. They require no home equity for amounts up to $25,000, and may qualify for home interest tax deductions. With solar lease and Power Purchase Agreement (PPA) financing programs, you could save 10% compared to your current monthly electric bill, BUT you will be locked in to a long-term contract AND give up the majority of your savings to the leasing company.

Remember, with a solar lease or PPA you do NOT own the solar panels, so you will give up significant rebates, tax credits and long-term savings.

Compare solar financing options in the chart
Compare Solar Financing Options

Be sure to understand any balloon payments and your options at the end of the solar lease term. For example, if you sell your home during the term, you will likely be required to provide a lump sum payment or have the new homeowner take out a new lease. This could complicate your life in the event of a future home sale. Although some financing programs promise "no money down" with a lease or PPA, you may need 10% to 30% of the total cost as a down payment. There are also pre-paid lease options, but they may have the similar restrictions.


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