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What are solar financing options for buying solar panels?

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One of the main barriers to buying your best solar panels has always been the high initial cost of solar panels. With the high solar panel cost for your PV system depending on system size, location, system performance and the cost of finance; a few flexible solar financing solutions have been developed with the customer in mind. 

The first option is a solar power purchase agreement (solar PPA) that allows a homeowner or a business owner to enter into an agreement with a solar provider with a no money down option and with a slightly reduced rate from their current energy bill. This allows the solar provider to install and own the system, but the host (solar buyer) agrees to buy solar electricity at a specific rate and for a specified period of time. 

Solar PPAs can be short as 5 years or longer as over 20 years depending on the payback period of the solar PV system. A great place to determine whether this option can work for you is by use of a solar power calculator that is specific to your energy needs. Using such as solar calculator is a great starting point to determine how much you can save using such a solar financing option. 

The second flexible solar financing option is solar leasing which allows you to lease solar panels for a specified rate and time. The host might decide to lease for some time and when is able to afford to purchase the solar panels depending on what is the agreement.  This option is also flexible for solar customers that are not able to pay upfront for the solar panels.

The third and the fourth solar financing options are cash and loan respectively which work depending on the price or the cost of finance etc.  Once you research and obtain a good price for your solar panels, you could either decide to pay them for cash or obtain a low-cost loan from a financial institution. 

Although, there is a lot of information on the Internet and you might be overwhelmed by the amount of information you need to digest and draw conclusions.  As a result, online solar marketplaces come in handy to help you shop for solar easier and faster. EnergySage are some of the well-known online solar marketplaces that can help you speed up the process of shopping for your solar PV system. 

What are flexible solar financing solutions? 

There are various financing options that you could obtain from banks, credit unions, and other financial institutions, however, such options may lack the flexibility needed based on the solar PV system that could be designed for you based on your energy requirements. You need flexible solar financing solutions that are unique to your situation and the type of solar panels you end up installing which might require you to work with a solar expert that can negotiate a better offer from a solar manufacturer or solar installer. 

EnergySage for example offers flexible or simple financing programs that make it easier for individuals to purchase the solar system they need. These solutions offer, for instance, homeowners the chance to manage the initial costs of a solar install, and are specifically designed for those with and without equity in their home, helping to further ensure that the system needed is within reach. You can learn more at EnergySage. 

You can also read more about solar financing options here for more details and how to go about the process of shopping for your best solar panels. 

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