“$0 down solar”, “Free Solar Installation”, or “No money out of pocket” are a few of the most popular myths that have been used to promote solar. Nothing is ever free in life; wouldn’t you agree? The answer is: yes! Nothing is free but you can get you solar installation done without the initial investment. What’s the catch? You have to be lucky enough to qualify.
“$0 down solar” is a very generic term that contains a variety of options. Will you get the solar system without paying anything? The true answer is: Not really! But what are you getting for free? If you are one of the lucky home owners that qualifies for a $0 down solar program, then you will get the solar installation without the initial cost. What does that really mean? Well, it really depends on the program you choose or you qualify for. Back in 2007-2012, this term would have definitely meant a $0 down solar lease or a $0 down PPA; but now with more ownership programs available in the market it can also mean a financed $0 down solar ownership.
The $0 down solar lease is the oldest form of the $0 down solar. The $0 down solar lease was launched in early 2007 as I remember. The $0 down solar lease started slow but by the end of 2011 was selling vigorously. Home owners loved the fact that it is a $0 down solar lease and that the $0 down solar lease is transferable to the new home owners if they decide to go solar. The $0 down solar lease also came with system warranty, monitoring, and insurance; which was a bumper to bumper coverage. The $0 down solar lease was the product that customers chose for a long period of time, and still today a lot of customers love the $0 down solar lease. Some consultants compare leasing a car to the solar lease but it’s totally different. The solar lease comes with full monitoring, warranty, and insurance; but you have to pay for your own insurance for a car lease. The solar lease is a $0 down lease but the car lease usually entails registration fees or these fees are being bundled in the lease and increase your payment. Also, the term is longer in solar installation than in a car.
The $0 down Solar PPA, also known as the $0 down solar Power Purchase Agreement, emerged as a hybrid of owning and leasing. People liked the idea of $0 down solar but didn’t like the word lease that much. They liked the bumper to bumper coverage but didn’t like the fact that they couldn’t own the system. The $0 down solar PPA offered what they wanted. The PPA is a Power Purchase Agreement where the home owner agrees to buy power from the solar installed equipment at a cost per kwh (Unit of measuring electricity). The home owner buys from the solar financing company for the duration of the term agreement, which is usually cheaper than the current utility. The $0 down solar PPA usually has the option of buying the solar equipment installed after a number of years. Some people call it “rent to own” which is not that accurate in our opinion. The $0 down solar PPA is one of the best options since the home owner is doing the same thing they are already doing. Buying power but at a cheaper price and from a cleaner source!
The $0 down solar ownership financing is very popular for smaller contractors because of the different financing companies providing $0 down solar financing companies from the PACE programs to the credit based loans.
Wondering which program will be best for you? Let’s find out together, scroll down and schedule your free solar installation!