Money Matters: How To Finance Your Rooftop Solar Energy System

Finance contracts, also known as financial services contracts, are legal documents that allow for individually negotiated agreements involving commodities, securities, currencies, or other economic or financial interests. You can browse to contact the leading financing contractors

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Here are your solar financing options:

Loans – You can take out a loan to buy the system. Loan options, including no-discount financing, are offered by some banks, credit unions, and solar installers. 

Leasing – Similar to renting a car, you can lease a solar system to reduce your initial costs. Under this agreement, the solar installer, financial service provider or other third party owns and maintains the system you have installed on your roof. 

You pay a fixed monthly amount to the company that owns the system. Check with your insurance company to make sure your policy covers the panels you rent. When you sell your home, how the rent will be transferred to the new homeowner is determined at the time of sale.

Power Purchase Agreement (PPA) – This is a lease agreement with a different name. The difference is how much you pay and to whom. Under the Solar PPA, you buy back the electricity your plant produces from the manufacturer at a set price per kilowatt-hour. 

PPAs are often offered for free, so you can quickly see monthly savings right on your energy bill. Ask if your PPA will increase the price you pay over time and consider the answer in your funding decisions.