Covering the Cost of Solar Power
There are many ways to make solar energy affordable for you—so you can start using clean, renewable power and benefit from significant long-term energy savings. The cost of solar technology has dropped dramatically in recent years, putting it within reach for many home and business owners, especially with the help of tax incentives and the right financing plan.
Learn more about federal and state tax incentives for solar.
Evaluating Your Financing Options
As solar has become competitive in the energy market, the financial options for installing solar energy systems on homes, businesses, and nonprofit organizations have expanded significantly. There are several models that make solar energy affordable, including direct purchase, loans, and solar leasing.
At Sundance, we help our customers identify the right financial strategy for them. If you’re interested in solar, we can help you find the option that will provide the greatest benefit and economic return, based on your financial resources and long-term goals.
When possible, direct ownership offers the most favorable investment opportunity. Tax credits and other incentives may help to put direct purchase within reach.
Loans are available to cover the up-front costs of solar power. In some cases, loans allow installation with no out-of-pocket costs. Financing may be obtained through traditional financial institutions. Sundance also has partners that offer specialized loans for solar. Direct financing is also offered by several solar panel manufacturers.
Renting or Leasing Solar Panels
In some states, you have the options of solar leasing or power purchase agreements. With these arrangements (not available in North Carolina) another company claims any incentives and maintains ownership of the solar panels, while you contract for a price that is typically less than the cost of a standard electric bill.
Expert Assistance with Solar Financing
Our consultants will help you understand the advantages as well as the disadvantages of each of the options identified below and bring financing partners to your project. Contact us today to get started on a cost-saving solar solution!
- Direct purchase with cash
- Include costs in mortgage for new construction or property
- Obtain a secured loan or home equity loan
- Obtain an unsecured loan
- Utilize capital lease or an operating lease for commercial projects
- Contract for solar lease with a company that maintains ownership of the system
- Enter into a power purchase agreement (PPA) from a company that maintains ownership of the system
Should You Buy or Lease Your Solar Panels?
While we’re happy to help consider any financing option that may work for you, in general, we encourage our customers to pursue ownership of their own renewable energy system, to maximize self-reliance and long-term return on investment.
Note that solar leasing and power purchase agreements are not allowed in North Carolina, under a law that prohibits third-party sale of electricity. Georgia and South Carolina do allow for solar leases and power purchase agreements.