SOLAR SD

What to Know About Solar Panel Financing

Current State and Federal tax credits and rebates significantly reduce the total cost of your project. For the remaining amount, Solar SD offers four options:

CASH

cash offers the shortest ROI because there is no added interest to pay off.

BANK LOANS

I know its common sense but you’ll want to work with a reputable bank that understands all the nuances of solar projects as well as one that offers the lowest rate possible. We know banks that love to fund solar projects

Property Accessed Clean Energy Programs (PACE)

Commercial and Residential PACE programs share a common foundation. PACE programs allow a property owner to finance the cost of solar, and other eligible improvements on a property (heating/cooling systems, hot water heaters, ENERGY STAR doors, windows, roofing, appliances, seismic retrofits, etc.) and then pay the costs back over time through a voluntary assessment on the property. The assessment is attached to the property rather than an individual.

  • Allows for secure financing of comprehensive projects over a longer term, making more projects cash flow positive.
  • Spreads repayment over many years, seldom requires an upfront payment, and removes the requirement that the debt be paid at sale or refinance.
  • Can lead to low interest rates because of the high security of loan repayments attached to the property tax bill.
  • Helps some property owners deduct payments from their income tax liability.
  • Allows municipalities to encourage energy efficiency and renewable energy without putting general funds at risk.
  • Taps into large sources of private capital.
  • Available only to property owners.
  • Cannot finance portable items (screw-in light bulbs, standard refrigerators, etc.).
  • Can require dedicated local government staff time.
  • May require high legal and administrative setup obligations.
  • Not appropriate for investments below $2,500.
  • Potential resistance by lenders/mortgage-holders whose claims to the property may be subordinated to the unpaid assessment amount should the property go into foreclosure

Power Purchase Agreements (PPA)

basically, an investor pays for all the costs associated to adding solar to your property. You do not have to pay for anything. The investor who owns the solar system then sells energy to you at a discounted rate, usually 20% less than what you’re paying. For example: if your average energy bill is $300/month, with a PPA you’ll pay only $240/month which saves you $720/year. Adding solar, using a PPA basically allows you to save money at zero cost to you and adds value to the property.

SOLAR SAVES MONEY

  • Solar can dramatically reduce your energy bill and support sustainability.

  • Solar can provide energy independence when coupled with battery storage.

  • Solar is a proven technology, costs have significantly come down, and with new incentives, there hasn’t ever been a better time to get solar.

  • Solar SD will use our 20+ years in sustainability to install a great system at a great price.

Built for Efficiency

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