You have various options to choose from for financing your solar installation project. The decision depends on your preferences, needs, and financial goals. To save you time with extensive research, we’ll take a look at all the options you can partake.
Should I Lease My Solar System or Use a Loan to Purchase My Solar System?
Setting up your solar system for lease means that you are renting it from the solar system provider. On the other hand, you get to own your solar system when you implement a solar loan.
Length of Agreement
Both options don’t require initial payments so you can immediately receive savings. On top of that, going solar would also immensely reduce your monthly utility bill. However, solar loan savings are comparably higher than the latter since they only have 7-15 year terms. Solar leases must be regularly paid, and depending on the terms of the agreement can sometimes reach 25 years.
Borrowers who acquire solar loans own their system, which indicates their eligibility for many financial incentive programs. The investment is eligible for the solar tax credit and in Connecticut the RSIP. For those who applied for solar leases, partner companies are the ones who benefit from these financial incentives. The solar leasing company will collect these incentives and pass them along to the site host by way of electric savings and with maintenance guarantees, but you are still missing out the potential for additional savings. .
Solar leases are paid over a more extended period of 20-25 years, while the latter can vary from 5-20 years. It is also important to note that solar loans have fixed monthly payments, while solar leases can sometimes increase as much as 1%-3% each year in what is known as an escalator clause.
In conclusion, solar loans can provide long-term savings if you take advantage of incentive programs. You should consider signing for solar leases if you don’t have enough money for upfront installation costs. This method can also help if you find yourself unqualified to any of the financial assistance programs available.
Green Power Energy’s Solar Loans in Connecticut
Green Power Energy offers several loan programs to customers in Connecticut. No one home or person is the same, so the options are flexible. With Green Power Energy, there is no prepayment penalty, so you can feel free to use additional incentives like the RSIP or solar tax credit to pay down the loan earlier. The loan is also simple to transfer to the new home owner in the event that you should decide to move. This is easier than transfering a lease in some cases, and should be desirable to the new homeowner considering Connecticut’s high utility prices.
The terms of Green Power Energy’s CT Solar Loans are 5,10,15 and 20 years with APR fluctuating from 2.99% to 5.99% depending on the term. You must own the home, and have a credit score over 640 to qualify.