Solar SME, Inc.

Solar Financing

Make the switch to solar easy with our flexible financing options


If you decide not to buy your solar PV system in cash, solar financing solutions like $0-down solar loans or a solar PPA / lease will help you save money on your electricity bill. The economic, environmental, and communal benefits of solar energy system make them very attractive. Currently, a solar photovoltaic (PV) system is a major upfront investment.

Solar Loans

Solar loans are a great choice for solar panel financing if you want to purchase your device. With a lot of solar energy loans, you can fund the entire cost of your device. Such loans can be secured or unsecured. You can also borrow a solar loan or an energy efficiency mortgage from the federal government for the solar financing for solar projects. With loans or mortgages, you will also have to pay the entire initial cost of your home solar system. Additionally, as solar panels increase property value, these loans contribute to long-term financial gains. Overall, solar loans play a pivotal role in promoting eco-friendly choices while offering financial flexibility and environmental responsibility to homeowners.


Points to consider for solar loans:

  • Your savings on your electricity bills should be greater than the monthly payment of the loan, which allows you to save money quickly.
  • Save 40 – 70 percent of electricity bills over the lifetime of your system by using a loan as a solar financing option for your panel.
  • Solar loans are of the same general framework, terms, and conditions as other home improvement loans. Some countries also offer subsidized solar energy loans with interest rates below the cost.
  • By simply buying your system, you are qualified for financial benefits such as the Federal Investment Tax Credit (ITC). Interest in guaranteed solar loans can also be tax-deductible, which shows extra savings on your income tax.

Solar Lease and PPAs

Power purchase agreements (PPAs) and solar leases are close to the leasing of your solar photovoltaic system. They give you a lot of the financial advantages of installing a solar panel system without paying for it. This is the most effective way homeowners can finance their solar energy systems. Through solar leasing or PPA, a third-party solar financing firm, such as Solar SME, purchases and keeps solar panels. You will pay a fixed price for the solar power produced by the system


Points to consider for Solar Lease and PPAs

  • With a lease or PPA, the third-party owner (TPO) can install solar panels on your property. In return, you agree to pay them a lower market rate for the use of solar energy for the duration of the agreement.
  • Selecting a PPA or lease as a solar panel financing option will help you save 10 to 30 percent per month on your electricity bills with no upfront investment needed.
  • A TPO would be responsible for the maintenance of solar panels. At the end of the contract, will either uninstall them or sell the device to you at fair market value.
  • Since the TPO owns the solar panel system, it will be liable for any rebates, tax credits, or other benefits provided by the government and your utility.

Pros and Cons of PPA Solar Financing


Solar Financing Pros     No initial investment, making solar accessible.

Solar Financing Pros     Lower electricity bills from day one, reducing costs.

Solar Financing Pros     Providers handle maintenance and repairs, reliving consumers.

Solar Financing Pros      Assurance of optimal system efficiency and energy production.

Solar Financing Pros     Adjustable contract provide scalability and adaptability.


Solar Financing Cons    It’s a long term commitment. Contracts often span 15-25 years, limiting flexibility.

Solar Financing Cons    No tax incentives or ownership advantages for consumers.

Solar Financing Cons    Price increases over the contract may impact long-term savings.

Solar Financing Cons    Specific location requirements may limit installation possibilities.

Solar Financing Cons    Vulnerability if the provider faces financial challenges, impacting service and guarantees.


What is the best way to pay for going solar?

The best way to fund your solar array depends on your income tax, credit score, or venue. It may also depend on how long you’re going to value the device. Speak to an energy expert for useful and accurate guidance on how to finance your solar system. Every option has its pros and cons. Each of these has a different effect on how many solar panels will save you and also how long it’ll take for solar panels to pay for themselves. The choice ultimately hinges on individual preferences, financial goals, and the desire for immediate ownership versus shared access. Selecting the right payment strategy ensures a seamless and financially viable transition to solar energy.

Frequently Asked Questions

Is Zero Down solar worth it?

Opting for a solar loan rather than a lease or power purchase agreement (PPA) is often more financially advantageous for most individuals. With a solar loan, you eventually own the panels after the loan term, ensuring long-term benefits. Additionally, you avoid annual electricity rate hikes, preserving the majority of your solar-related savings.

What are the drawbacks of leasing solar panels?

Leasing solar panels may have drawbacks, such as limited financial benefits compared to ownership. Lease agreements often entail long-term commitments, and while upfront costs are lower, long-term expenses can surpass purchasing. Additionally, lease terms might restrict system modifications, and at the end of the lease, you don't own the solar system.

Is it better to pay cash or finance solar panels?

The decision to pay cash or finance solar panels depends on individual financial status. Paying cash offers immediate ownership and cost savings over time, while financing allows for lower upfront costs and the possibility of using loan interest deductions. Consider financial goals, budget, and available incentives when deciding.Top of Form

Are solar loans tax deductible?

In some cases, the interest on solar loans may be tax-deductible. Consult a tax professional to understand the specific eligibility criteria and potential deductions. Tax incentives and laws vary, and factors such as location and changes in tax codes can impact the deductibility of solar loan interest.

What happens to leased solar panels when you move?

When you move, options include transferring the lease to the new homeowner, buying out the lease, or arranging for the solar company to remove the system. Terms vary, so consult your lease agreement and the solar provider for details on relocation procedures and associated costs.

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