Even as the price of solar has come down, the Government Income Tax Credit incentive is still available.
Simply put, you pay the least with the cash option. Paid in full, no financing needed. If you can afford this option, absolutely, do it. The reality is that many do not have the luxury of paying cash for a solar energy system. We know that, and we are here to help with great options. Be careful. Cash is only good if you can benefit from the 30% Income Tax Credit. If you don’t pay that amount in Income Tax you don’t qualify for the tax credit.
The loan option may give you the shortest pay off term for your solar energy system. You will pay a little more than with cash, but with Solar Friendly Loans and $0 money down, the loan option is popular with many. Once the loan is paid off, no more payments need to be made. The system is yours, and you gain the full potential of the energy savings. Financing is only good if you can benefit from the 30% Income Tax Credit. If you don’t pay that amount in Income Tax you don’t qualify for the credit.
With the lease you do not actually own the solar energy system, the company financing you does. This option has you paying about the same as cash or loan option, but allows you to benefit from the Income Tax Credit without having to qualify. It is the easiest way to start saving on your energy costs immediately. A lease essentially freezes your energy costs at today’s rate for the length of the lease. Typically 20 years. The lease will likely have a lower monthly payment than a loan. The best thing about the lease is No Down, No Interest, No Lien! You basically pay the same as cash without the large upfront cost.
No matter how you finance it, solar will save you money on electricity costs, and that savings you will realize immediately and for years to come.