California Solar Financing: Know Your Options

Father with his little daughter carrying solar panel

One of the biggest hurdles for many homeowners and businesses when transitioning to solar energy in California is figuring out how to finance their solar panel installation. While the cost of solar panels has significantly decreased over the years, it can still be a substantial upfront investment. Fortunately, several financing options are available to help make going solar more affordable.

Financing Options for Solar in California

1. Solar Loans

A solar loan is one of the most popular ways to finance a solar panel installation in California. These loans are designed for homeowners looking to invest in solar energy and typically have lower interest rates than traditional financing options. With a solar loan, you can either take out a secured loan, which uses your home as collateral, or an unsecured loan, which does not require collateral. Many solar loan providers offer flexible terms and payment options to fit your budget.

2. Power Purchase Agreements (PPAs)

Power Purchase Agreements, or PPAs, are another common financing option for solar in California. With a PPA, a third-party solar provider installs the solar panels on your property at no upfront cost. In exchange, you agree to purchase the electricity the solar panels generate at a fixed rate for a predetermined period, typically 15-20 years. PPAs are an excellent option for homeowners who want to go solar without the financial burden of purchasing the system outright.

3. Solar Leases

Like PPAs, solar leases allow homeowners to benefit from solar energy without the upfront cost of purchasing a solar panel system. With a solar lease, you pay a monthly fee to lease the solar panels from a third-party provider. While you won’t own the solar panels with a lease, you can still enjoy the cost savings and environmental benefits of solar energy. Solar leases typically come with maintenance and performance guarantees, so you can rest assured that your system will be properly maintained.

4. Property Assessed Clean Energy (PACE) Financing

PACE financing is a unique option, allowing homeowners to finance their solar panel installation through their property taxes. With PACE financing, you can borrow money to pay for your solar panels and repay the loan through an assessment of your property tax bill. PACE financing is a great option for homeowners who may not qualify for traditional financing or want to spread out the cost of their solar installation over time.

5. Home Equity Loans or Lines of Credit

If you have equity in your home, you may be able to use a home equity loan or line of credit to finance your solar panel installation. By tapping into the equity in your home, you can secure a lower interest rate than you would with an unsecured loan, making it a cost-effective way to go solar. Home equity loans and lines of credit offer flexible terms and repayment options so you can choose the best option for your financial situation.

Choosing the Right Solar Financing Option for You

When deciding on a solar financing option in California, it’s essential to consider your financial situation, goals, and preferences. Some factors to keep in mind when choosing a solar financing option include:

  • Upfront Costs: How much can you pay upfront for your solar panel installation?
  • Interest Rates: What are the interest rates and terms associated with each financing option?
  • Ownership: Do you want to own the solar panels outright, or are you comfortable leasing or entering into a PPA?
  • Tax Incentives: Are you eligible for federal or state tax incentives that could offset the cost of your solar installation?
  • Energy Usage: How much energy do you currently use, and how much can you offset with a solar panel system?

By carefully considering these factors, you can select the solar financing option that aligns with your budget and goals for going solar.

Contact Us Today!

Ready to take the next step towards energy freedom with solar financing in California? Look no further than Helios Corporation, Southern California’s premier solar company. With a team of experienced professionals and a commitment to providing clean, reliable, and affordable energy solutions, Helios Corporation is your go-to source for all your solar needs. Don’t let high energy bills hold you back any longer- call Helios Corporation today and discover why we are the best solar company in Southern California.