Migrating to solar power may save you 20% to 100% in electric bills, help you reduce your carbon footprint, and help you get other long-term financial benefits. Some Killeen homeowners may need assistance affording the initial set-up costs of a solar power plant at their home. They should know they can benefit from solar savings while paying $0 in upfront costs using power purchase agreements or solar power loans.
Here are the financing options that will make it possible for your Killeen, Texas home to become solar without paying $0 towards a downpayment.
$0 Solar Loan
When you opt for a $0 solar loan, you essentially borrow money from a solar power company to purchase your solar installation. Like any loan, you pay back the solar loan in monthly installments along with interest. The amount you pay per month depends on the cost of the solar system you install, the interest rate that the solar company offers, and the duration of your loan term.
Even with a $0 downpayment, you are the owner of the solar installation, and you are entitled to claim the federal tax credit of 30% in your tax return.
$0 Solar Lease
When you finance your solar power system with a $0 solar lease, you essentially enter a contract with a solar system leasing company. You pay a fixed amount in “rent” to the leasing company every month, which depends on the power generation capacity of your solar system. It is usually 10% to 30% less than your traditional utility bills.
It is important to note that in the case of a lease, the leasing company owns the solar power system and is liable to maintain it throughout its lifetime. But, since they are the owner, you cannot claim any tax breaks or rebates for the solar installation.
$0 Power Purchase Agreement (PPA)
$0 solar PPA is similar to a $0 solar lease in almost all aspects except one. When you enter a PPA with your solar power company, you set a price you agree to pay per kWh of power the system produces. The only difference between a solar lease and a PPA is the calculation of monthly payments.
You do not pay any fee upfront, pay a monthly mutually agreed price, and receive a 20% to 30% reduction in your utility bills.
Get Solar Power Benefits for $0 Down
Green Power Energy can help you understand which option fits your requirements the best. The solar power company assists Killeen, Texas, homeowners in filing documentation, getting approvals, and applying for tax incentives for the type of financing they opt for.