Unless you've been living under a rock, you've probably heard a thing or two about the increasingly popularity of installing solar panels on residential roofs as an alternative method to generating power for homes.
There are several reasons people consider this option, whether it be for financial reasons or whether they are committed to go-green, save-the-world initiatives. Certainly there are advantages to going solar in both of these cases.
But whether you are serious about converting to the solar side or whether you simply want to know what the buzz is about, knowing what financing options are at your disposal is helpful and instructive.
Essentially, when it comes to paying for solar power to come into your home, you have two choices: a Power Purchase Agreement (PPA) or a solar lease.
Let's discuss what a solar lease is and what the pros and cons are of this method.
Installing a solar power system for your home involves a lot of moving parts, people and organizations. For you, the customer, you're likely concerned with two things: cost and performance. In short, you want to know how it will benefit you (and be more beneficial than traditional electric power) and what it'll do to your pocketbook.
As you start the process of installing a system for your home, most companies will offer you either a lease or a PPA. Some give you the option, but most do not. With a solar lease, you are actually paying a fixed monthly fee for use of the system. Whereas with a PPA, you are paying according to how many kilowatts of power is generated. The good news about this difference is that no matter how hard your solar system is working, you'll pay the same every month.
Here are some other important components of a solar lease:
There are obvious advantages to selecting a solar lease when having a solar power system installed at your home. Here are a few:
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