Most people who choose not to get solar panels do so because of the high down payment cost. This down payment will pay off over time, but coming up with the large sum of money can be difficult. Fortunately, there are options for those of us who don’t have that chunk of money to spare. You have a couple of options to choose from to help you afford solar panels in California.
Home Equity Loans
This is a popular option for homeowners who went solar. A home equity loan is a type of loan where the borrower uses the equity of his or her home as collateral. This loan can then be used as the down payment for the solar panels. You can contact local providers to learn more about a home equity loan, although most solar contractors have partnerships with existing lenders.
Power Purchase Agreements
A power purchase agreement (PPA) is beneficial to the customer in that the solar system is owned and maintained by a third party, and they don’t have to pay a down payment. This third party sells the kilowatt-hours back to the customer, and the customer only pays for the energy their solar system generates.
By leasing a solar system, customers can get the benefit of owning a solar system without the initial cost. The system is rented through a solar company so they still get the energy savings. This is a good option for people who plan on staying at their home for 5 years or less.
Solar Investment Tax Credit
Once the solar system is purchased you can qualify for the solar investment tax credit (ITC). The solar ITC offers a federal investment tax credit for both residential and commercial consumers. Residential customers will get back 30% of what they paid for the solar system.
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