Solar Installation Costs

There is no doubt solar installation requires a considerable investment at the beginning for your residential or commercial solar energy plan. When getting to know about the capital cost of a solar installation, many people believe that the solar electricity is not affordable for their homes. You must not take into account the upfront installation charges if you are looking for long term benefits of solar power systems by reducing your energy costs. However, there are some financing options you can choose to reduce the uproot costs of solar installation like Power Purchases Agreement (PPA) and solar leases.

Financing Option: Solar Leases

You can reduce the capital cost for the installations of solar panels and other equipment with the help of the solar lease; your plan for upfront cost reduction of a solar power installations. You will cover the charges for a solar installation by paying a fixed amount of installments each month, meanwhile producing energy from the solar panels. Your lease provider will own the solar panels and will also maintain them until you pay the final installment. Solar leases help you get the benefits of solar power system at low rates while eliminating high utility bills.

Financing Option: Power Purchase Agreement (PPA)

In the case of a power purchase agreement (PPA), you only pay for the electricity produced and used. You do not own the solar panels system and you have no need to pay for the installing charges Instead your PPA provider owns the solar panels and other equipment and covers the installation cost.  This agreement also sets you free from the worry of maintenance or repairs as your PPA provider maintain your equipment. You will only pay a fixed rate for the electricity produced which would be considerably lower than the electricity rate from the utility companies.

Right Financing Option for Solar Installation

It depends on the location of your home or business as to which installation option is suitable for you. Both a solar leases and PPA options reduce the installation charges making solar power system affordable for your home or office.

Benefits of Financing Installations of your Solar Power System

By choosing a solar lease or PPA for financing your solar power system installation, you will get some more benefits other than saving money. These financing options release you from the strain of repair and maintenance of your system because a third party owns the system and is responsible for maintaining your equipment. When you install the solar system of your own you pay extra fees for inspection, which may vary from place to place, solar installation financing options helps you avoid such additional charges.

Contact Smith Sustainable Design to learn more about different financing options and their benefits and make it possible to use solar power for your home or business without paying a heavy upfront amount. We will help you get a better understanding of financing option that fits in your budget.