Customers pay for the entire solar system upfront.

Pros:

Full ownership of the system from day one.

Maximum savings over time because there are no ongoing payments.

Eligible for federal, state, and local incentives or rebates.

Immediate increase in property value without an additional lien.

Cons:

High upfront cost (can range from $10,000 to $30,000 or more, depending on the system size and location).

Best For: Homeowners with sufficient savings who want maximum financial benefits.

Customers take out a loan to cover the cost of the solar system. They repay it over time with interest.

Types of Solar Loans:

Secured Loans: Tied to home equity (e.g., HELOC or home equity loan).

Unsecured Loans: Not tied to home equity (higher interest rates than secured loans).

Pros:

Low upfront cost (often $0 down).

Potentially lower monthly payments compared to utility bills.

Ownership of the system once the loan is paid off.

Tax benefits (eligibility for the Federal Solar Investment Tax Credit, or ITC).

Cons:

Interest costs increase the total payment amount.

Monthly loan payments may last 5-25 years, depending on the terms.

Best For: Homeowners who want to own their solar system but prefer spreading out the cost over time.

Customers lease the solar panels from a third-party provider. They pay a fixed monthly amount for using the system.

Pros:

Little to no upfront cost.

Fixed monthly payments can make budgeting easier.

Maintenance and repair are typically handled by the leasing company.

Cons:

The customer does not own the solar panels, so they do not receive tax credits.

Potentially lower long-term savings compared to purchasing.

Lease agreements can last 20-25 years, with escalator clauses increasing payments over time.

Best For: Homeowners who want to reduce their utility bills without the upfront costs or maintenance responsibilities.

Instead of paying for the solar panels, customers agree to buy the electricity generated by the system at a fixed rate per kilowatt-hour (kWh), usually lower than the utility rate.

Pros:

No upfront cost for the solar panels.

Savings on energy bills from day one.

Maintenance and monitoring are typically included in the agreement.

Cons:

The customer does not own the system, so they miss out on tax benefits.

Long-term contracts (often 20-25 years) can have escalating rates.

Transfer issues may arise if the homeowner sells the property.

Best For: Homeowners who want immediate energy savings without buying or financing solar panels.

Customers buy or subscribe to a portion of a shared solar project (not on their property). They receive credits on their utility bill for the energy generated by their share of the community solar farm.

Pros:

No installation on the customer’s property.

Suitable for renters or homeowners with shaded roofs or HOA restrictions.

Flexible subscription models (monthly or annual payments).

Cons:

Savings might be less than with individual rooftop systems.

Availability depends on location and program options.

Best For: Renters, people with unsuitable roofs, or those who want a simple, low-commitment way to support solar energy.

Federal Solar Investment Tax Credit (ITC):

Provides a tax credit of 30% of the solar installation cost for systems installed through 2032.

State Incentives:

Many states offer additional rebates, tax credits, or performance-based incentives.

Net Metering:

Allows customers to sell excess electricity generated by their solar panels back to the grid, reducing their overall utility bills.