Step 4. Solar Financial Issues
The Solar Buying Guide - Step 4 is what is recommended for most solar shoppers. It will be enough to make the financial decisions necessarily to acquire solar in the best way (lease, buy, or PPA) and pay for it most economically.
The Guide pares the information to the minimum most people need. This section of the website offers the full versions of the articles on the topics summarized in the Guide.
The Guide pares the information to the minimum most people need. This section of the website offers the full versions of the articles on the topics summarized in the Guide.
First 6 Articles: Factors Determining Solar Financial Choices
The first six articles are more in-depth treatments of six of the seven key factors on which solar financial choices rest. In fact, each of the twelve financial options available (combinations of ways of acquiring and ways of paying) must be evaluated in terms of these seven factors to see which option is best for a particular solar shopper.
The Buying Guide briefly explains these seven factors. Some people will already know about them, and not everyone needs to understand them thoroughly. The Guide goes on to evaluate all twelve options in terms of the factors and presents conclusions.
But for anyone who wants to know more about the factors, six of the seven are explained in depth in this section (the seventh, Repairs, needs no further explanation than in the Guides):
The Buying Guide briefly explains these seven factors. Some people will already know about them, and not everyone needs to understand them thoroughly. The Guide goes on to evaluate all twelve options in terms of the factors and presents conclusions.
But for anyone who wants to know more about the factors, six of the seven are explained in depth in this section (the seventh, Repairs, needs no further explanation than in the Guides):
- Current & Future SCE Rates
- Inflation & Its Effect on Solar Costs
- Solar Rebates & Financial Aid
- Solar Tax Credits & Deductions
- Solar Increases Home Value: the only adequate treatment of this topic I know of
- Solar Panel Risks
The Last 2 Articles: How to Acquire It and Pay for It
The second group of articles are two that it would be very nice to spare you as well. But unless you are quite knowledgeable about these areas and how they work in the solar arena, these two articles are unfortunately necessary for most solar shoppers.
The Three Ways to Acquire Solar
The first, Solar Lease, Buy, or PPA, describes the pros and cons of each of these three ways of acquiring solar. It evaluates each way in terms of the six factors in the articles above (plus the seventh factor, repairs, treated sufficiently in the Buying Guide). Leasing is especially tricky, and Power-Purchase-Agreements (PPA) are pushed hard by the vendors, even though they don't really make sense for most homeowners. This article explains why.
Solar Financing
The second article, Solar Financing Options, is the full version of the abbreviated (but still lengthy) section on Loans in the Buying Guide. It outlines all the combinations of way of acquiring and way of paying for a system - something that's hard to get clear about from what you will be presented with by salespeople. It describes and treats the pros and cons of paying for your PV system in each of the following ways:
■ Cash
■ Unsecured loans ("solar loans")
■ Quasi-secured loans (PACE loans)
■ Secured loans and lines of credit (home-improvement loans)
■ Other government-backed loans
■ FHA and FannieMae loans if you're buying or refinancing
It concludes with a handy table showing a comparison of costs of different ways of financing solar.
Finally, I must again disclaim responsibility for any consequences that arise from following my advice on this website or in the Solar Buying Guides, particularly in these financial areas. I am not a CPA or attorney, and as such, am not permitted to give tax or legal advice. I've done the best I can to provide basic introductions to the relevant topics for solar shopping, but you should not rely on any of the statements on this website or in the Solar Buying Guides without consulting your own tax advisor or attorney.
The Three Ways to Acquire Solar
The first, Solar Lease, Buy, or PPA, describes the pros and cons of each of these three ways of acquiring solar. It evaluates each way in terms of the six factors in the articles above (plus the seventh factor, repairs, treated sufficiently in the Buying Guide). Leasing is especially tricky, and Power-Purchase-Agreements (PPA) are pushed hard by the vendors, even though they don't really make sense for most homeowners. This article explains why.
Solar Financing
The second article, Solar Financing Options, is the full version of the abbreviated (but still lengthy) section on Loans in the Buying Guide. It outlines all the combinations of way of acquiring and way of paying for a system - something that's hard to get clear about from what you will be presented with by salespeople. It describes and treats the pros and cons of paying for your PV system in each of the following ways:
■ Cash
■ Unsecured loans ("solar loans")
■ Quasi-secured loans (PACE loans)
■ Secured loans and lines of credit (home-improvement loans)
■ Other government-backed loans
■ FHA and FannieMae loans if you're buying or refinancing
It concludes with a handy table showing a comparison of costs of different ways of financing solar.
Finally, I must again disclaim responsibility for any consequences that arise from following my advice on this website or in the Solar Buying Guides, particularly in these financial areas. I am not a CPA or attorney, and as such, am not permitted to give tax or legal advice. I've done the best I can to provide basic introductions to the relevant topics for solar shopping, but you should not rely on any of the statements on this website or in the Solar Buying Guides without consulting your own tax advisor or attorney.
