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Paying for Solar Costs: Solar Panel Financing

We offer multiple financing options to ensure going solar meets your financial needs and situation.

Forme Solar is an established broker of renewable energy systems for both residential and commercial buildings. 

Call Forme Solar today at 877-288-1097 or submit your information to receive a free quote.

Lease vs. Own Solar

Solar Panel Lease Vs. Own

Just like with a car, the choice between buying and leasing is a tough call, but in both scenarios, you will save money by adding a solar energy system to your home or commercial building.

Maximum Savings

Purchase

(Cash or Loan)

Own

No Credit

PACE Financing

Own

$0 Initial Payment

Lease

Lease

Special type of Lease

PPA

Paying for Solar

Understanding Solar Financing Options

Not all solar loans are the same. Knowing what kind of loan is most appropriate for your situation prepares you for talking to lenders and getting the best deal for your situation. One of the most common forms of financing in solar are Power Purchase Agreements (PPA) since you can see immediate savings with $0 out of pocket.

Maximum Savings

Purchase

Save immediately with $0 interest when you buy your solar PV system. Typically paid back in 5-7 years.

Pay a Lower Bill

Financing

Switch to solar energy with accessible monthly payments that are lower than your current electricity bill.

$0 Initial Payment

Lease

Rent your solar panels and get instant savings without having to pay anything out of pocket.

Lease Simplified

PPA

Skip the upfront costs, you pay a fixed rate for your electricity (per kWh) for the power the system generates.

Financing to Own Your Solar Panels

Maximize Your Benefits

Purchase (Cash)

Quick Tip: Fastest ROI.

Typical payback is 5-7 years.

If you'd like to pay for your own system upfront and purchase it outright, this is typically the best option if you have the capability to do so. This is the greatest way to maximize your savings since you don't have to pay for financing, plus you will receive all tax credits, rebates and incentives that are availability in your area. In addition, if you're in an area with higher utility prices or use higher electricity tiers, this will result in a larger savings over time.

Homeowners looking to own and maximize their equity

Benefits: Maximize your Return on Investment

Cons: High out of pocket & typically responsible for repairs and maintenance

Own the System

Purchase (Loan Financing)

Quick Tip: Typically for individuals with poor or no credit. Fixed monthly payment.

Leasing a solar PV system is another form of financing where you pay a fixed monthly amount to use the energy generated by the solar system on your roof.

You will be renting the system from a solar company, or third-party financier for typically less than what you were paying for power. However, when you lease you do not own the system and therefore are not eligible for state or federal solar tax incentives.

Best For: Individuals with high utility prices and want to save on your electric bill without any initial out of pocket.

This an option to consider that would be beneficial if you live in an area with high utility prices and want to save on your electric bill without investing a significant amount of your own money in solar.

Homeowners looking to own with $0 out of pocket

Benefits: Eligible for all benefits of owning, with little or no upfront costs

Cons: You are typically responsible for repairs and maintenance

Own the System

PACE Financing

Quick Tip: Own a solar system with little or no credit

PACE is an additional form of financing that is popular for homeowners who want to go solar but don't have the right credit score or financial situation to allow for going solar to work. Property Assessed Clean Energy (PACE), is a special form of financing that is available in areas where the local government is providing special financing. This financing is often adopted by individuals who have had poor credit and equity in their home, but want to be able to buy solar panels. This is a broad program that applies to any home improvement that improves energy efficiency and impacts your property taxes.

Typically for homeowners with poor or no credit, looking to own

Benefits: You get all of the benefits of going solar

Cons: It increases your property taxes

PACE Financing Process

01

Funds Released

The local government, like a city or county will make funds available for homeowners to access.

02

Funding

A lender provides those funds to property owners who want to make clean energy improvements like installing solar panels

03

Property Taxes

Homeowners pay back this loan through an assessment that is attached to their annual property taxes.


Financing to Lease Your Solar Panels

Predictable Bill

Lease a Solar PV System

Quick Tip: Typically for individuals with poor or no credit. Fixed monthly payment.

Leasing a solar PV system is another form of financing where you pay a fixed monthly amount to use the energy generated by the solar system on your roof.

You will be renting the system from a solar company, or third-party financier for typically less than what you were paying for power. However, when you lease you do not own the system and therefore are not eligible for state or federal solar tax incentives.

Best For: Individuals with high utility prices and want to save on your electric bill without any initial out of pocket.

This an option to consider that would be beneficial if you live in an area with high utility prices and want to save on your electric bill without investing a significant amount of your own money in solar.

Typically for homeowners with poor or no credit

Benefits: Maximize your Return on Investment

Cons: High out of pocket & typically responsible for repairs and maintenance

Easy Way to Adopt Solar

Power Purchase Agreements (PPA)

Quick Tip: The most common way for homeowners to finance their solar systems. Monthly electricity bill will rise or fall with the amount of power your system produces.

With solar leasing or a power purchase agreement (PPA), a third party solar financing company will purchase and take care of your solar panels. You pay a fixed rate for your electricity (per kWh)) for the power the system generates. The biggest difference is that your monthly bill will rise or fall with the amount of power your system produces.

This method allows the purchaser to skip the upfront cost and lock in low rates for solar electricity for up to 25 years. It is important to note that the PPA is a lease! You aren’t purchasing the system, but you do have a buyout option at the end of your lease versus a traditional lease where you have to have someone pick up the equipment. The buyout price is typically based on the market value of the system at the time. At the end of a lease it will produce about 75-80% efficiency. 

We empower homeowners in their shift to renewable energy sources and help reduce their energy costs

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