Solar Panel Financing Options: How to Pay for Your Solar System

SolarTech offers several financing options to make solar energy accessible. You can purchase your system outright with cash for maximum long-term savings, use a solar loan to own your system with little or no money down, or choose a solar lease/PPA where you pay a monthly fee for the power produced. Each option has different benefits – cash purchases provide the highest return on investment, loans balance affordability with ownership benefits, while leases require no maintenance responsibility. Our team will help determine which option best fits your financial situation and energy goals.

Solar loans from SolarTech allow you to own your solar system with little or no upfront cost. Typical loan terms range from 10-25 years with competitive interest rates between 2.99-5.99%. Most loans include a balloon payment option that allows you to apply your 30% federal tax credit toward the principal within 18 months of installation. Monthly loan payments are often structured to be less than your pre-solar electric bill, creating immediate positive cash flow. As a SolarTech customer, you’ll retain ownership of your system and qualify for valuable tax incentives and rebates.

The main difference is ownership. When you buy solar panels (either with cash or through a loan), you own the system, qualify for the 30% federal tax credit and other incentives, and typically see greater long-term savings. With SolarTech’s leasing option, we own and maintain the system while you pay a monthly fee to use the electricity it produces. Leasing requires no upfront costs or maintenance responsibilities but provides less long-term savings and doesn’t qualify for tax incentives. Buying is generally better for homeowners planning to stay in their homes long-term, while leasing may benefit those who want solar with zero upfront investment.

SolarTech believes in transparent pricing. With solar loans, be aware of potential dealer fees (sometimes called finance charges) which typically range from 20-40% of the system cost and are incorporated into the loan principal. These fees help secure lower interest rates. Solar leases may include annual payment escalators of 1-3%. All financing options include our comprehensive warranty coverage. Before signing any agreement, our team will clearly explain all costs, including potential balloon payments tied to the federal tax credit, and provide a detailed comparison of your financing options so there are no surprises.

When you own your solar panels through cash purchase or a loan, they typically increase your home’s value – studies show homes with solar sell faster and for more money. If you have a remaining loan balance when selling, you can either pay it off from the sale proceeds or, in some cases, transfer it to the new homeowner. Solar leases can be more complicated – the new buyer must qualify to take over the lease agreement, which some buyers may be reluctant to do. SolarTech’s team can help facilitate this process if you decide to sell, providing all necessary documentation and support to ensure a smooth transition.