Learn about Residential Solar Energy Providers
Home solar power has been around for decades, but not until recently has it started to gain momentum as a money-saving option for homeowners. In the past, residential solar power was prohibitively expensive for most homeowners and commercial enterprises. Many home and business owners who wanted to get onsite renewable power generation for the electricity bill savings or to help the environment were priced out of the green energy market.
Then, solar companies began working with businesses to structure financing options. Their creative solution helped many businesses install a system without a large initial investment. Now, solar energy providers are applying the same financing strategies to help homeowners get a system installed and operating at little to no upfront cost.
What are my options to finance home solar power?
Residential solar energy providers now offer homeowners leases and power purchase agreements (PPAs) as alternatives to purchasing a home solar power system outright. The terms “lease” and “PPA” are often used interchangeably, but they have different technical meanings. Additionally, different solar companies structure their leases or PPAs differently, but generally speaking the difference is as follows:
- Solar power system lease – Leasing is akin to renting a residential solar power system. The solar company owns, installs and maintains the system on your roof. The homeowner uses the power that the system produces and makes monthly payment to the solar company. Lease terms for home solar power systems are typically 20 years. Commercial leases can range from 7-20 years.
- PPA – Power purchase agreements are different from leases in how payment is set up. The property owner buys the power the system produces and pays a per kilowatt-hour (kWh) rate instead of a fixed monthly amount. If the solar power system produces more or less from month to month then the monthly payment goes up or down accordingly. PPAs are more commonly used for commercial enterprises.
Just because you choose to lease your solar power system does not prevent you from eventually purchasing your system. Many residential solar energy providers offer buyout options, which allow homeowners to purchase the home solar power system during the lease or at the end of the term for a predetermined price or fair market value. Exercising the buyout option of your lease can be a great way to test the solar energy waters before diving into system ownership.
Let SolarPowerDeals.org be your guide
SolarPowerDeals.org is a great place to start learning about solar companies and what it takes to finance a residential solar power system. We did the research for you and make it easy to compare residential solar energy providers before you make a long-term commitment. SolarPowerDeals.org is your one-stop resource for learning about residential solar power and exploring different offerings from multiple solar energy providers.