Solar is getting really confusing, although it shouldn’t. Some companies advocate buying and others leasing. Are these the only two options?
SunGuide Solutions is a solar company that provides free unbiased consulting services and solar project management. We don’t favor any specific approach or installer. We want you to know and understand all of your options so you can choose the right fit for you!
Below are the available options in the market:
Purchasing is the oldest way of going solar. You would simply pay for the system and pay a significantly lower energy bill (mainly service fees). It requires a capital, as well as good research in the terms of the agreement. This option creates the best return on investment and the shortest payback period.
Developed between 2006-2007 and was very popular when it started due to the lack of upfront payment and bumper to bumper coverage, with a lower monthly payment. But, slowed down in the last couple of years due to the problems arising when selling the home. There is a lot of misunderstanding and miscommunication when homes with leased solar are sold. Certain utility companies will only accept the Lease option, but in most territories it’s being replaced by the PPA.
PPA “Power Purchase Agreement”
In our opinion, a hybrid between the Lease and the Purchase options, where there is no upfront cost and the home owner buys the power produced by the system instead of buying it from the utility. PPA also gives the option to buy the system at specific times (Differs by agreement).
It is getting more popular to buy the system using $0 down financing techniques like PACE programs and other secured and unsecured loans, as well as SAC loans to cover tax credits.
Want to know more? That’s why we’re here. We help you explore all scenarios so you can choose the best for your home, family needs, and finances.