Why Solar?
There are many great reasons to invest in solar energy and battery storage for your home.
Maybe you're looking to save money or want to be more energy-independent and be sure that you’ll have power (via battery storage) in the event of a blackout. Maybe you're socially responsible and are genuinely concerned about climate change. Or perhaps you want to fit in among a group of solar-savvy neighbors. Whatever the reason, going solar seems more and more like a bright idea.
Going solar is still very new for most of us and can be a bit intimidating. In this article, we want to help you get familiar with some solar financing options--just in case you're considering upgrading to solar now or in the future.
If you’re like most Americans just getting started with solar, you’re probably asking yourself:
Is solar right for me?
Is right now a good time to go solar?
Will it be a worthwhile investment for me in the long run?
How much will it cost to install solar panels on my roof?
And how will I pay for it?
Full disclosure--the upfront costs associated with a solar installation can be out of reach for many homeowners. The good news is that various solar financing options are available, designed to match your budget and lifestyle, quickly making solar a reality.
So, what solar financing options are there? What are the differences between each option? And which choice is right for you? Let’s dive in.
How it Works
Every month after you use a certain amount of electricity you get two big charges on your bill. 1. Electricity Generation (CCA Charge) 2. Distribution & Delivery. (1) The first charge you pay is to get your energy created or Generated from a big ugly natural gas or coal-burning power. (2) The second charge is to get the energy that was created to travel hundreds of miles through the powerlines to be delivered directly to your home for you to use. The reason your bill is so expensive is because of those long distances that your energy has to travel. The real question is, how do we get rid of it?
Well, the first step is to get enough solar and batteries to store and produce all of the electricity you need directly from your home. Since solar harnesses the sun to produce electricity your home will now become the (1) Electricity-generating powerplant (2) delivering the energy directly from your roof into batteries where it will be stored and used later on; eliminating the need to buy power from a source hundreds of miles away. This is how we're able to eliminate the majority of your electricity costs.
Now that you understand how solar works, you might be wondering:
- what does it cost and why am I always advertised free solar? In summary, it's not free. When we look at your current situation, without solar, you have an electricity bill that has no end date, keeps going up every year, and is a bill you literally can not call in and cancel. Since solar eliminates the majority of that bill, we can then replace it with a bill that pays off the solar over time and is much cheaper than your current electricity costs. In many cases, we could even combine the costs of a new roof, install solar and batteries, and still be cheaper than your current utility costs. That being said, we have listed the two best options you can use to go solar.
Solar Ownership
A relatively common option to own solar with little to no money down is through financing. With ownership through financing, you upgrade to solar by agreeing to make payments over time.
If you don’t want to pay the total cost upfront, you can finance the system with monthly payments at a competitive rate. Paying back the federal solar tax credit (ITC) is optional. You can either keep it for yourself or save more on your monthly electricity bill by paying it towards the solar finance. Not only will this pay down the loan but also build equity in your home
Power Purchase Agreement (PPA) or Fixed Lease
Solar leases and PPAs are perfect if you want to go solar, lock in a predictable energy cost, aren't concerned with tax credits, and enjoy your solar system being managed and maintained professionally.
With a lease, you’re financing a solar system and paying monthly installments based on the total cost of the system, not system performance. Typically, a lease is an option in states where PPAs are unavailable.
A PPA is a financing agreement between a homeowner and a solar company. The company installs and maintains a solar system on the homeowner’s property, and the homeowner agrees to purchase the solar energy produced by the solar system at a $/kWh rate (with an agreed-upon annual rate of escalation). A PPA is a good option for homeowners who want predictable energy costs, no upfront or maintenance costs, and will not benefit from tax credits.
SunView offers two PPA options, both with 25-year contract terms and maintenance included:
EverFixed: Homeowner monthly payments are calculated based on a yearly average solar productivity (estimated annual kWh/system size - kW) at the agreed upon $/kWh rate (with an agreed upon annual rate of escalation). This gives the homeowner greater certainty about their energy costs, which helps with budgeting and financial planning. In addition, it’s easier for the homeowner to understand, as it avoids the need to explain the variance in solar production throughout the year. EverBright guarantees the system’s production. Our EverFixed Plus offering has all the features of our EverFixed product, plus a battery storage add-on.
EverFlex: Homeowner monthly payments are based on the actual power generation that the solar system produces monthly.
We've got you covered--any way you choose to finance your battery storage and solar system.
SunView makes upgrading to clean energy accessible and affordable with various residential solar financing options.*
*Not all products are available in all areas