Guide to Financing
Embarking on the Solar Journey: A Comprehensive Guide to Financing
The prospect of 'Going Solar' is now more accessible than ever, backed by a 2015 study from the Lawrence Berkeley National Laboratory and the US Department of Energy, revealing an 8% reduction in the cost of installing solar panels on homes. With a myriad of financing options available, including loans, leases, power purchase agreements (PPAs), government rebates, tax incentives, and various discounts, the question has shifted from 'how' to 'when.'
This page serves as an invaluable guideline and educational resource, aiding you in choosing the financing model that aligns best with your needs.
Financing Options for California Residents
Solar Purchase Agreement
Upfront Cost: $15,000 to $30,000 (excluding incentives and savings).
Responsibility: Maintenance is the homeowner's duty.
Solar Lease or PPA
Leasing Option: Lease the equipment and utilize the produced energy.
Flexibility: No commitment to the equipment; upgrade options are available.
A Solar Loan
Credit Approval: Credit is granted upon approval.
Upfront Cost: Minimal to none, with access to rebates and incentives.
Payback for Solar Financing
Investing in a solar system can yield a minimum 50% reduction in utility costs for homeowners. The payback period varies based on the chosen financing option, with a clear diagram provided for easy understanding.
Advantages of Purchasing a Solar System
Residential solar systems increase home resale value by $5900 per kilowatt, according to a 2015 study by the Lawrence Berkeley Laboratory.
Solar Rebates & Tax Incentives
Californians can potentially slash upfront costs by nearly 50% through various rebates and tax incentives. Explore the provided links for detailed information.
Tips From the Experts
Making decisions about financing a solar system is a significant investment. Here are six valuable tips from the experts at Wing Solar & Wood Energy, Inc. to ease your decision-making process
Consider Future Energy Usage: $Anticipate changes in energy consumption, such as children leaving for college or investments in energy-efficient appliances.
Review Contract Terms: Understand the pros and cons of leasing, PPAs, and outright purchases. Legal review is advised to ensure transparency in costs and avoid overpayment.
Understand Utility Rates: Be aware of tiered utility rates based on usage to optimize cost-effectiveness.
Consult Your CPA: California homeowners may benefit from various tax credits; consulting a CPA is recommended.
Ensure Receipt of All Credits: Credit is granted upon approval.
Closing Thoughts
Embarking on the 'Going Solar' journey raises questions and concerns, and we understand the magnitude of this decision. However, the rewards, once realized, are significant. Explore our website, especially our solar resources page, to gain comprehensive insights into the world of 'Going Solar.