3 Most Common Ways to go Solar on your home.
3 Most Common Ways to Pay for Solar Panels for your home.
Power Purchase Agreement.
Another company gets rights to your roof to install solar panels and sell energy to you as a primary electric company for you with your normal local grid operator acting as a back up!
Pros:
- White glove service style, if anything goes wrong with system PPA comes to fix it, and will make up the difference in energy bills if there is energy used at grid rate
- No upfront cost or lowest cost way to get solar.
- Less hassle, permitting, installation, finding a crew, insuring the system works all handled for you as well as a extra roof warranty.
- Immediately locks in a lower price than what you currently pay. Yearly increase locked in as well at a dramatically lower rate than what most utility companies have raised rates historically.
- PPA’s will extend the warranty of a roof usually much longer than a contractor doing installation
Cons:
- Over the long term, if nothing goes wrong this is more expensive
- Something to add to a home sale: if the new owner doesn’t want solar (not sure why they wouldn’t) you or the owner is required to pay off the remaining cost of the solar system the PPA installed(note: the new owner could take over the PPA contract for the remaining years it exists without any costs or fees)
DIY Pay out of pocket up front method
If you are more of DIY kind of person, installing with your own money might be the way to go. While it does take far more effort and time than another company doing everything in a PPA method, it can be a cheaper method long term. If you have the money, this gives you more control on your installation. You can find your own contractors, do your own permitting and choose your own panels and equipment.
Pros:
- Can be cheaper long term (if nothing goes wrong)
- More control with the panels and choosing installers
- Able to receive local rebates
Cons:
- You must pay money upfront and be responsible for all cost
- Can be more expensive in the long run if something goes wrong
- Owner is responsible for paying people (or doing it themselves) to fix system long term
- More time consuming upfront and long term
Get a loan for paying up front
If you don’t have the money now, there are financial institutions that will loan you the money. Many contractors also advertise “no money” installation, but they are simply advertising their services in conjunction with a loan. Its very important to understand that the government is’t giving away anything for free. They are offering rebate, and there are loans available for installation and equipment, but you are still assuming the debt, the interest, and risk if anything goes wrong. The pros and cons are identical to paying for everything upfront, the main difference is that over the long term you are accruing interest and so the total cost will be higher.
What ends up being the best way to go solar?
It really depends what kind of consumer you are. If you are the type that likes to buy a used a car and do the oil changes and repairs via watching youtube videos and buying parts yourself, the DIY method of upfront or financing might be the way to go. If you are a person that likes not to their oil changes or you do not like to learn how to do maintence and repairs on your car yourself, the the PPA is a really great option. Either way, solar is here and is far more cost effective than any time in history.
If you don’t have the money now, going PPA is the best bet as you receive immediate electricity cost saving now and protection from electricity hikes in the future as well as a guarantee that the system will always work. The negative about a PPA is generally generated from people who don’t understand the agreement or from solar contractors or solar loan providers. But once you understand what you are getting into, PPA can be a great almost hands free option and is guaranteed to be a better option than continuing to pay for grid electricity.
