Financing
Solar Universe offers a variety of options to choose from for financing your solar system. By
financing your solar system, you can gain an immediate savings off of your utility bill with
little or no money out of pocket. Each financing option varies in structure, please review the
below options and let us know how we can accommodate your needs:
Solar Lease
In lieu of paying cash for a solar system, many home owners are choosing to lease their solar
systems. A solar lease allows a home owner to install solar on their home without the large
upfront investment, provides the security of knowing that all equipment is maintained by the
lessor, systems are remotely monitored and that performance is guaranteed throughout the term of
the lease. Solar leases tend to vary from 15 to 20 years and they offer flexible buyout options at
specific times throughout the lease. There are no “interest” payments, instead the customer will
pay fixed “Rent” payments to the lessor which typically yield a savings from day 1 for the
homeowner. Solar leases are a no-hassle, worry-free way to go solar.
PPA
Power Purchase Agreements (PPAs) are a form of solar financing typically reserved for
commercial projects 100kw greater in size. The power purchase agreement is signed between the host
customer (the customer) and the owner of the system (master tenant). PPAs are similar in nature to
a lease in that they allow the customer to go solar without the upfront cost and with the extended
repair/maintenance included, however, the billing mechanism is different from a solar lease, in
that you only pay for the power produced at a pre-set rate. Each month, the host customer will
receive a statement of how much they owe.
Unsecured Loans
Unsecured loans are also known as “personal” loans, and are typically guaranteed by the credit
worthiness of the homeowner. Unsecured loans can vary in term from 5 years to 20 years and often
have a 1-time balloon payment due at a pre-defined date. An unsecured loan is not a mortgage and
does not encumber the property – consequently, the interest on a personal loan is not tax
deductible. Unsecured loans are great for those that do not want a lien on their property, have
good to excellent credit and will likely pay them off in the near future. Unsecured loans exist
for residential customers only.
PACE
Property Assessed Clean Energy (PACE) financing is a government sponsored way to finance your
solar system. In lieu of taking out a mortgage on your home, your county or city will add a
special “solar assessment” to your property tax bill and paid when your property tax bill is due.
Because it’s a property tax assessment, it will be automatically transferred to the next owner of
the property. PACE programs exist for both commercial and residential customers but have been
limited for residential customers due to a dispute between Fannie Mae and the PACE program over
seniority of the assessment.
Same as Cash
Same as cash (SAC) programs offer the home owner (not businesses) to finance the cost of their
solar system with no interest and no payments for some short period of time. At the end of that
period, the full principal is due in full or interest begins accruing. SAC programs are another
form of an unsecured loan and are available to homeowners based on their personal credit
worthiness
Refinance
During a common refinance, homeowners can pull additional money out of their home equity to pay
for their solar system. This type of loan is also known as a "cash-out refi". You must have a fair
amount of equity in your home to qualify for such programs, but with interest rates being at
historic lows, this is a great way to finance your solar system. Further, the interest payments on
the mortgage are tax deductible allowing the homeowner to maximize their net savings.
For more information contact us at:
866-6SOLAR9
financing@solaruniverse.com