Financing a Solar Energy System
Solar customers have multiple options when paying for their solar energy systems
Purchasing Systems with Home Equity Loans or cash-Home owners who buy their solar systems up front see the quickest payback, typically 7-8 years. After that they can declare energy independence. Home equity lines of credit (HELOC) are a very popular method of financing for PV systems as it allows customers to pay the loans down at their own pace. HELOCs allow customers to see immediate positive cash flow from day one with interest-only minimum monthly payments. With a purchase, home owners will receive a 30% Federal Tax credit which call help pay for the initial cost of the system.
Financing with a Renewable Energy Loan Loan
Unique Solar partners works with San Diego Metro Credit Union and Admiral Bank to provide a range of solar financing options. Both offer secured and unsecured loans with rates ranging from 4.99% to 9.99% depending on terms and credit score. Of course, homeowners are also welcome to provide their own financing, available through banks, S&Ls or credit unions who may be able to provide lower interest rates.
Power Purchase Agreements – Under a “PPA,” a third party owns and maintains the customer solar system, selling the kilowatt-hours back to the customer at a favorable rate over a 20 year period. Thus, customers who opt for a solar PPA typically have low capital costs and pay only for the electricity their solar systems generate. The homeowner does not receive the benefit of the 30% Federal Tax Credit when they lease. The tax credit goes to the leasing company.
Solar Leases – By leasing a solar system, customers can get the benefits of owning a solar system with little or no up-front costs. Solar customers opting for solar leases simply rent the solar system from a company as they would any other home appliance while earning the benefits from the electricity the system produces. . A monthly lease can give the homeowner a payment that is lower than current electric bill typically 30-35% less than your average electric bill. The homeowner does not receive the benefit of the 30% Federal Tax Credit when they lease. The tax credit goes to the leasing company.
Property Assessed Clean Energy (PACE) – Solar customers likewise may have the option to finance their solar systems through their local governments. This program allows property owners to finance solar power systems through property taxes without spending any money out-of-pocket and without a credit score requirement. The solar customer then pays more on the annual property tax bill to repay the loan. The loans are permanently fixed to real property, so that residents need not worry about their system’s break-even point and can pass the loan payments on to subsequent buyers of the property.
HERO in San Diego: Carlsbad, El Cajon, Escondido, Lemon Grove, Oceanside, San Diego, San Marcos, Solana Beach, Vista and the Unincorporated Area