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.