SolutionsFinancing Solutions to suit your family's needs
Solar financing really depends on your lifestyle, taxable income, roof orientation and your expectation of savings. Golden Bear will work with you to find the best financing that fits the needs of your family. Whether it be a cash purchase, a financed purchase, or a lease we have the right type of funding that will best suit your needs. Every finance option has its benefits and drawbacks and we will work with you to explain these programs in detail to allow you to make the best decision for your home.
BENEFITSComparing if a solar lease or loan is right for you
Both solar loans and solar leases/PPAs offer benefits for homeowners, and there are multiple factors to consider when making your solar financing decision.
SAVINGSCash flow over the length of the agreement
Both $0-down solar loans and $0-down solar leases/PPAs result in immediate savings, with no money out-of-pocket, because your monthly loan or lease/PPA payment will be less than your current monthly utility bill. The monthly savings from a solar loan, however, are likely to be higher than the savings from a solar lease or PPA. This is because solar loans are typically paid down in 7 to 15 years, whereas leases require regular payments over a longer term of the agreement.
A prepaid or custom down payment lease/PPA will require some money out-of-pocket, but can also result in lower monthly costs.
INCENTIVESTax credits and other financial incentives
Solar system owners are eligible for a solar investment tax credit (ITC) equal to 30 percent of the cost of the system upon installation. If you choose to finance with a solar loan, you directly benefit from the financial incentives. If you sign a solar lease/PPA, the owner of the system is the solar lease company, and they receive the financial incentives instead.
PAYMENTSMonthly payments: How big? Fixed or increasing?
Solar leases and PPAs are generally offered for a 20- or 25-year term, and the terms for solar loans can vary from 5 to 20 years. The monthly payments for most solar leases and PPAs increase at a predetermined rate of 1 to 3 percent annually, while solar loans typically have fixed monthly payments.
The monthly payments for a 20-year solar loan are likely to be lower than those of a 20-year lease or PPA. How much lower depends on many factors, including your personal credit, APR offered, term and system size.