When considering financing options for solar energy, you have several choices: Cash, Loan, Lease or PPA

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Cash: Cash payments offer the most lucrative return on investment and long-term savings for solar energy systems. With this option, customers pay for their system outright, utilizing either cash or credit cards. This payment method eliminates the need for interest rates, credit check and additional fees, providing a straightforward financial transaction. Cash payments yield a quicker return on investment and maximize long-term savings potential. Additionally, by owning the system outright, customers qualify for state incentives and tax credits, further enhancing their financial benefits. Furthermore, owning the system increases home value and facilitates easy transfer during a home sale. 

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Loan: Solar Loans provide a pathway to solar ownership without requiring a substantial upfront cost. Instead, homeowners make monthly loan payments over a fixed period. While loans may increase the overall amount paid due to the annual percentage rate, being the legal owner of the solar system offers opportunities to lower overall costs. This includes leveraging state incentives and tax credits. By owning the system, homeowners can potentially maximize their returns. 

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Lease: Solar leases enable homeowners to rent solar systems directly from a solar company. With this arrangement, customers commit to long-term leases and pay fixed monthly rates. Typically, solar leases span 20-25 years, aligning with the standard warranty time for solar panels. The solar company assumes responsibility for all system maintenance and repairs. Solar leases are particularly suitable for homeowners who don't qualify for loans, cannot afford a large upfront cash payment, or simply aren't interested in owning their solar system. 

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PPA: Solar Power Purchase Agreements (PPAs) represent another type of solar financing agreement, similar to a solar lease. Instead of paying to rent the system itself, with a PPA, you pay for your monthly energy usage. Under this arrangement, you'll by charged for each kilowatt-hour of energy you consume each month. Typically, the rates under PPAs are lower than those offered by other financing options, such as solar leases or loans. Your contract will outline the expected rate, which is typically lower than the utility rate for electricity. Moreover, most solar providers include system maintenance and repairs with a PPA.