Are you ready to purchase a home solar power system? Have you considered your options yet? At West Coast Solar, we help homeowners determine their renewable energy budget, how they will purchase their system, and then help them make the purchase. Not only do we design and install solar energy systems, but we also assist our customers through the financing process.

In this post, we’ll share the various purchasing options for residential solar power systems that homeowners can use. In part two, we discussed solar power potential, and in part one we offered some ways to determine the energy efficiency of a home. If you’re ready to get started on financing your system, give West Coast Solar a call today! We’ve been servicing residents in Sacramento for years, and we’re available to help you! Otherwise, continue reading this blog series to learn more.

Question #3 – What are your solar power system purchase options?

When it comes down to the money, people cring—not because of the cost, but because of the feeling they get when they make an investment, departing from their hard earned cash to create a better future for their family. Nonetheless, whether you’re paying in cash, attaining financing, or leasing the solar power system from a company, there are plenty of options for you to take advantage of renewable, alternative energy. Here are some purchasing options:

Cash Or Loan

The best option is to either purchase a home solar power system with cash or with a personal loan. This way, you either own the system or have only one entity to interact with in the event of financial hardship. Nonetheless, when you use cash or get a loan, you can maximize your long-term return on investment. In most cases (depending on your utility company), if you purchase a solar power system with cash or a personal loan, you will be able to sell excess energy back to the grid and gain a credit on your utility account. This means that you can use that credit to purchase energy from the grid or simply let that build up for a rainy day, literally.

If a few of the characteristics below apply to you, a cash or loan purchase of a solar energy system may be right for you:

  • You want to install a home solar power system
  • You’re eligible for federal or state tax credits
  • You’re willing to be responsible for repairs and maintenance (most solar power companies offer warranties and repair services)
  • You want to reduce your utility/electricity costs
  • You want to sell excess energy back to the grid
  • You have upfront cash to put towards or purchase your solar system outright

Community Solar

If you have cash, a personal loan, or a combination of both, you are in a great position to purchase a solar energy system. But what if you don’t have enough roof space to install it? In most cases, those with inadequate roof space rarely have space on their property where a system would effectively produce energy for them. This means that community or shared solar systems are a great option. The system can be off-site while you and others can benefit from renewable energy. Here are a few reasons to buy into a community solar power system:

  • You want solar power but cannot install on your own property
  • You’re not eligible for federal or state tax credits
  • You do not want responsibility for repairs or maintenance

Solar Panel/System Leases

In the event that you lease a solar power system, you’re able to use the energy it produces, but someone else owns the equipment and components. This means that you’re responsible for making the payments, however, you don’t’ have control of the system, energy, repairs, or maintenance. Typically, a lease agreement allows for the individual leasing the system to pay less than their traditional electricity bill while still able to use energy to power their home. Here are some reasons why you may choose lease a system:

  • You want to install a home solar power system, but you’re unable to afford the upfront costs
  • You’re not eligible for federal or state tax credits
  • You do not want responsibility for maintenance or repairs
  • You want to reduce utility costs via electricity

Solar Power Purchase Agreements (PPA)

Slightly different than a solar power lease, a PPA allows for the energy user to host a solar power system and then pay for energy usage—typically, the host purchases power at a kilowatt-per-hour rate. In most cases, a PPA is created to take advantage of a system producing an excess of power, and the owner can make more selling the energy to nearby businesses and homes instead of selling it to the grid.

Finance Your Home Solar Power System Today!

When it comes to buying a solar energy system for your home, there a number of options to make the switch to solar. At West Coast Solar, we’ve helped hundreds of Sacramento residents find a way to use the sun to power their homes—and in some cases, their electric cars. In part two, we explored how to determine a home’s solar power potential. Continue reading this blog series to learn more!

Are you ready to explore home solar system financing options? Give West Coast Solar a call today!