Determining The Right Finance Option
There are a few factors to consider when determining the right finance option for your decision to go solar.
- Consider your budget: If you have the funds to pay upfront, a cash purchase may result in the highest savings. If not, explore alternative options that do not require any initial payment.
- Assess ownership preference: If owning the system is important to you, your best choice is to either finance the system or purchase the system upfront.
- Review your tax liability: If you have ownership options with cash or loan, you may be eligible for a tax credit. However, if you do not have any tax liability, you may not qualify for the tax credit. In that case, you should consider a lease or PPA instead.
- Analyze long-term savings: Compare the potential savings, incentives, and costs associated with each finance option to determine the most cost-effective solution.
Remember that the right finance option varies from person to person. It's important to consult with a Better Earth Solar Professional and a Tax Professional to discuss your specific circumstances and find the best fit for your solar project.
Ownership Options
Cash Purchase:
How it works:
- When you choose the cash option, you are electing to pay for your entire system upfront. With this option, you will not have any monthly solar bills to pay; only the monthly connect charges to your utility company.
- To calculate your return on investment (ROI), divide your average monthly electric bill by the net cost of your system (after tax credits have been applied) to determine the total number of months to break even. Keep in mind that this is a conservative estimate and does not account for potential utility rate increases.
Pros: