Which Solar Investment Option is Right for You?

Today, we’ll break down the three standard solar panel purchase and payment options to help you choose the best fit for your home or business.

Power Purchase Agreement (PPA)

A Power Purchase Agreement (PPA) is an attractive option if:

• You care about the environment and reducing your carbon footprint
• You don’t want any upfront costs for solar panel installation
• You’re not primarily motivated by monthly bill savings

With a PPA, you get solar panels installed for $0 upfront, but you’ll never own the system. You’ll continue purchasing power from the grid, although at a lower locked-in rate than non-solar customers. This means your monthly electric bill savings may not be substantial, but there will likely be some savings.

Solar Loan

Solar loans are among the most popular solar financing options. With a solar loan, you:

• Pay $0 upfront
• Enjoy low or 0% interest rates
• Pay back the loan cost monthly

While repaying the loan, you’ll generate solar energy to offset your utility bills. Your monthly expenses will typically be lower than average, especially during summer when solar production peaks.

Outright Purchase

Purchasing your solar system outright is the most expensive upfront option but offers the quickest return on investment. The benefits include:

• You own the system from day one
• Every kilowatt you produce is yours, potentially eliminating your electric bill
• You can sell surplus energy back to the grid for credits
• State and federal incentives help lower the initial cost significantly

While the upfront cost is high, the long-term savings on your electric bill can make this a worthwhile investment.

Commercial Solar Options

For businesses interested in going solar, solar loans are currently unavailable. Your options are to purchase the system outright or sign a PPA. Ready to explore solar for your home or business? Download our Solar Panel FAQ guide or contact us today to get started.