There are several ways to finance solar panels, and the best financing method will depend on your budget and personal preferences. Not all solar companies offer multiple solar financing options, but the best solar energy companies in Texas tend to offer at least a few payment methods, including:
Cash
If you have the funds to do so, paying in full with cash is the most cost-effective way to pay off a solar system. By paying up front, you avoid paying any interest that comes with a solar loan. Interest can significantly increase the cost of your solar panels by anywhere from 3% to 17%, or an average of around 6%.
Loan
Paying in cash isn’t an option for everyone, given the high cost of going solar. One of the next best options is to take out a solar loan. When looking for the best solar loan, search for companies that offer a low interest rate from 3% to 6%, a $0 down payment and flexible terms.
Lease
Solar leases used to be the most popular option for financing solar panels, as ownership was financially out of the question for many homeowners. Today, however, solar leases are less common than buying solar panels and may not be the best way to obtain solar panels. If you choose to lease your solar panels, you can’t take advantage of the 30% federal tax credit.
You also won’t own your system, and switching a solar lease contract over to new homeowners if you decide to move can be complicated if they don’t want to take over the lease, leaving you to pay early termination fees.
Purchase Power Agreement
A purchase power agreement (PPA) is another way to finance solar energy without ownership. As with a solar lease, a company owns the solar panels, but instead of paying a fixed rate to rent the panels, you pay for the energy you use.
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