What loans are available to finance a solar PV system?
If a homeowner decides to purchase a solar system, they may use one or a combination of options: cash, solar loans, property assessed clean energy (PACE) loans, home equity loans, or a bank low-interest energy efficiency and renewable energy loan.
Solar Loan: Solar loans that allow homeowners to finance their solar installation through loan products specifically designed for investments in residential solar. Powur has many Finance Partners who offer various loans and terms for residential solar installations.
Property assessed clean energy (PACE) loan: This type of loan is only available in some markets and it is approved based on property value and not on personal credit. The loan stays with the property and ownership transfers to the new homeowner.
Home Equity Loan: A bank loan secured with equity from the house.
Low-interest Energy Efficiency and Renewable Energy Loan: Typically offered by credit unions or banks, these loans are a secured loan with low interest rates.
What about a Lease and a Power Purchase Agreement (PPA)? What's the difference?
Other financing options include leasing a system or entering into a Power Purchase Agreement (PPA). Both mean the system is third-party owned, and they pay per month. In a lease, they pay a fixed monthly rate no matter what your system produces. With a PPA, you pay a fixed amount for each kWh the system produces. The terms for a lease or PPA are usually 20 or more years.