What Solar Plan is right for you?
| Purchase | Finance | Lease / PPA | Pre-Paid PPA | |
|---|---|---|---|---|
| Buy the solar system upfront. Potential reduce your electric bill to $0. ROI typically in 4 – 7 years. | Own your solar system. Make flat rate payments with interest as low as 2.99% for 5-20 yrs | Monthly electricity payments – far less than what your utility company charges. | Pay upfront for 20 years of electricity. No annual rate increase. | |
| Savings | Best long-term savings | Best savings less interest paid | 20% -30% better than utility rates | Potentially better if you do not pay income taxes |
| System Ownership | Homeowner Owns Their System | Homeowner Owns Their System | Leasing Company Owns the System | Leasing Company Owns the System |
| Upfront Cost | $1,000 deposit. Balance due per contract schedule. | $0. Make monthly payments per loan schedule. | $0. Pay for electricity for 20 years. | $500 deposit. Balance due per contract schedule. |
| 30% Tax Credit | ||||
| Monthly Payment | None | Make monthly payments per loan schedule. | Make monthly payments per PPA schedule. | |
| Added Value to Home |
Cost Comparison of a Typical Installation
Solar Purchase – Cash
Total Projected 25 -year Cost of Electricity
| Lowest Cost Options! | |||
|---|---|---|---|
| Solar Purchase | |||
| Utility Company | Solar Lease / PPA | FINANCED $0 Down |
CASH PURCHASE |
| $112,500
|
$71,800
|
$26,860
|
$23,200
|
Paying for your solar system in full up front delivers the greatest long-term savings and return on investment. Therefore, by avoiding paying interest and other third-party expenses, you ensure the greatest savings on your solar investment.
You will not only recover 30% or more of your system cost through tax incentives but your energy savings will pay for the system in a typically 5-7 years with decades of free electricity to follow.
Purchase with Cash benefits:
- Offers the greatest return on investment (ROI).
- Avoid increased rates in utility bills.
- Take advantage of the 30% Federal Solar Tax Credit and state and local rebates.
- Your solar system will pay for itself with savings on your utility bills.
- Increase your Property value.
- Own the solar system for life.
- 25-year complete System Warranty.
- One time all included solar system cost.
Solar Purchase – Financing
Financing your solar system offers the same main benefits as purchasing with cash. Therefore, you receive the greatest long-term savings and return on investment, less lender fees and interest you pay. The payments made for solar financing will still far out weigh the cost of paying your utility company for electricity.
United Sun Energy offers 100% financing with $0 upfront fees, low interest fixed rate loans. There are no pre-payment penalties on these loans we offer allowing you to pay your system in full if you wish. In addition to United Sun Energy’s solar loans, and PACE loans, Home Equity Lines of Credit or 2nd mortgages through a bank or credit union are also popular options.
As a result, you will not only recover 30% or more of your system cost through tax incentives, but in most cases your energy savings will be so great that you will save money from the moment the system is installed. Then, once the system is paid off, you will enjoy putting the entire monthly savings back in your pocket.
Purchase with Financing benefits:
- 100% financing available with no upfront out-of-pocket costs
- Extremely fast approvals
- Low Payments & Immediate savings.
- Avoid increased rates in utility bills.
- Take advantage of the 30% Federal Solar Tax Credit and state and local rebates.
- Your solar system will pay for itself with savings on your utility bills.
- Increase your Property Value.
- Own the solar system for life.
- 25-year complete System Warranty.
- 25-year Performance Guarantee.
- Pay as you go for your solar system.
- Low interest rate loan terms up to 25 years.
Solar Leasing / PPA
With a Power Purchase Agreement (PPA), the solar company installs the solar system at no cost to the property owner. For that reason, the electricity generated from the solar panels is purchased by the property owner at a reduced rate, much less than they would pay their utility company. The homeowner agrees to purchase the energy generated by the system at a fixed $/kWh rate, typically 20% less than current utility rates.
A Solar Lease is similar to a PPA but you are leasing the solar equipment and paying a reduced price compared to the electricity that your utility company is charging you. Consequently, with a solar lease you still do not own the solar system.
The PPA and solar leasing agreements usually include an “escalator” clause that increases the rate every year, typically between 2% – 5% annually; 2.9% being the industry norm. Generally, the term of these agreements are usually 20 years and include a complete system warranty.
There is no upfront money needed to get the solar panels or solar PV system; like financing your solar system to own it. You are guaranteed the equipment will generate the amount of electricity you signed up for. Therefore, savings are by far better than the what the utility company is charging you for electricity.
Leasing or a PPA might be right for you if you pay little or no federal income taxes as you cannot take advantage of the 30% Federal Solar Tax Credit. There are several downsides to a solar lease or PPA. The property owner does not get the 30% Federal Solar Tax Credit or any local or state incentives, the solar company does. There is no added value to the home as the solar does not belong to the property owner. So if the property is sold, the new owner must take over the remaining term of the PPA or lease, which the new owner may or may be willing to or be qualified to do.
Solar Leasing / PPA Benefits
- No upfront out-of-pocket costs
- Fast in-home approvals
- Low Payments & Immediate savings.
- Avoid increased rates in utility bills.
- Pay much less than your utility bills.
- 20-year complete System Warranty.
- 20-year Performance Guarantee.
Pace – Solar Purchase
PACE, or Property Assessed Clean Energy financing allows a property owner to fund solar systems with little or no up-front costs. Residential or commercial property owners living within a participating district can finance up to 100% of their solar project and pay it back over time as a voluntary property tax assessment through their existing property tax bill. The PACE loan is included as a special tax/assessment on your property. PACE financing is only available to property owners in certain cities or counties that have adopted a program.
PACE works like a loan, and you still qualify for the 30% tax credit. There is no credit score requirement, and the loan might be transferable if you sell your property. The PACE program has minimal credit requirements and is based mostly on the equity in the home or building. You typically need 15% equity in your building and must be current on your property taxes and have not been late on your mortgage in the last 12 months to qualify.
This program is great for owners that do not qualify for traditional financing. The interest on the solar loan might be tax deductible.
Purchase with PACE benefits:
- 100% financing available with no upfront out-of-pocket costs
- Fast in-home approvals
- Low Payments & Immediate savings.
- Avoid increased rates in utility bills.
- Take advantage of the 30% Federal Solar Tax Credit and state and local rebates.
- Your solar system will pay for itself with savings on your utility bills.
- Increase your Property Value.
- Own the solar system for life.
- 25-year complete System Warranty.
- 25-year Performance Guarantee.
- Borrow up to 15% of your properties value
- Flexible repayment terms: 5, 10, 15, 20 or 25 years
- Balance may transfer to new owner upon sale, subject to lender approval