Did you know that the global market size for solar power is $184.03 billion? Going by current trends, experts expect the industry to grow to roughly 293 billion by 2028.
The industry continues to expand daily because more people are becoming environmentally conscious. Solar power has also proven to be more affordable than other energy sources in the long run.
Note that the keyword is in the long run. Solar is quite expensive in the beginning. Many people cannot afford the initial investment.
Luckily, there are several solar financing options in the market today. You no longer have to put off switching to clean energy.
Read on to learn about various solar panel financing options.
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Cash
Buying cash is the best financing option. The commercial solar financing incentives for buying cash are huge.
You stand to enjoy state and federal tax incentives and depreciation savings. You’ll also pay less for your system if you choose to buy in cash.
Sure, solar energy systems are not in any way cheap. But, you’ll have paid for over 20 years of electricity when you invest in solar systems.
Can you imagine not having to deal with energy payments for over twenty years? Learn about solar savings to see just how much you stand to gain.
Many companies have already jumped on the wagon. So can you. Investing in solar energy systems makes more financial sense than money market instruments.
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Leases and Power Purchase Agreements (PPAs)
Leases and PPAs are somewhat similar. Their popularity has declined over the years, but they’re still great alternatives.
With both options, you’ll not be the owner of your systems. Instead, your systems’ ownership will belong to a third party. The third party pays for and installs systems and sells you the electricity produced.
You’ll need to agree on the amount you’ll be paying before installation. Though you’ll still be making payments as you do currently with your electricity, you’ll stand to save a lot of money.
This is because most third parties charge lower rates than current electricity prices. You’ll also avoid monitoring and maintenance costs. The third party will incur the maintenance expenses because the system is not technically yours.
But, note that you’ll not be eligible for the tax incentives available when you own the system. Instead, the third party will enjoy the rebates and other incentives.
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Loans
Loans are also a viable option. Like regular loans, solar loans will help you if you don’t have enough money for your investment.
You’ll need to work with solar financing companies or banks. Each offers varying solar financing rates. So, you’ll need to do some research to identify the best alternative.
Like leases and PPAs, you’ll need to make regular payments instead of a one-time payment. But, unlike leases and PPAs, you’ll own your solar system.
So, you’ll be eligible for financial incentives. You’ll also spend less than you do on regular electricity. Not too bad, right?
Learn the Various Solar Financing Options Available
The solar financing options available in the market cater to all groups of people. If you have the resources, you can always buy cash.
If you don’t, there are always leases, PPAs, and loans. Either option is cheaper than paying regular energy prices each month.
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