Financing for Solar Systems

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So you have decided that Solar is the right way to go. Whether you are looking at a Solar Thermal System or a Solar Photovoltaic Installation, you will have to spend quite a bit of cash. You see the benefits and the payback and you are ready to go, but how to pay for this system?

Luckily there are a variety of programs in the market that will allow you to finance your system without having to overstretch your budget. You can either take out a home equity loan and pay for the system that way, or you can apply for lease or financing of your system. A lease has many advantages, you just have a monthly payment, whereas the installation and maintenance will be taken care of by the leasing company. Very often you can structure the payments to be lower than your monthly electricty bill, which makes it almost a no-brainer.

 Be aware though that you don't own the system, its a lease of equipment on your roof. When the lease is up you can normally buy the system for a residual amount. Don't sweat that part - the leasing company will be very happy to re-negotiate that residual when the time comes. Think 15-20 years from now. They have depreciated the cost of your system fully and who will want to take a 15 or 20 year old system off your roof? Mind you the system will still work like on the first day. The average name brand panel manufacturer will offer a 25 year warranty on the performance of their panels.

So financing is a very viable option to eliminate the high upfront cost of systems.