If you’re interested in investing in solar energy for your home or business, you may be wondering what types of solar financing are available to you. Here’s a brief overview of some of the most common types of solar financing options:

1. Solar Loans: Similar to a mortgage, solar loans allow you to finance the cost of solar panel installation over a fixed period of time. The interest rate and loan terms will vary depending on the type of loan and lender, but many solar loans are structured so that the monthly payments are less than the energy savings you’ll enjoy from using solar power.

i)   Equipment Financing: Equipment financing is a type of solar loan that allows you to finance the purchase of solar equipment, such as panels, inverters, and batteries, over a fixed period of time. The equipment serves as collateral for the loan, so you don’t need to use your home or property as collateral.
ii)  Asset-Based Financing: Asset-based financing, on the other hand, allows you to use the equity in your home or property as collateral for the loan. This type of financing can provide longer repayment terms and lower interest rates than equipment financing or other types of solar loans.
iii) Commercial Property Assessed Clean Energy (C-PACE) Financing: C-PACE financing is a type of financing that allows property owners to borrow money to pay for energy-efficient upgrades, including solar panel installation. The loan is paid back through property taxes over a fixed period of time. This type of financing has very long terms, but it has higher fees since the underwriting process is more complex.

2. Power Purchase Agreements (PPAs): PPAs are a popular option for businesses or homeowners who don’t want to own the solar panels outright but still want to benefit from solar energy. With a PPA, a third-party provider installs the solar panels on your property and then sells the electricity generated by the panels back to you at a fixed rate. The PPA-provider would collect the incentives and give you a lower rate for electricity than you currently have.

3. Solar Leases: A solar lease is similar to a PPA, but instead of buying the energy generated by the solar panels, you lease the panels themselves from a third-party provider. The provider will install and maintain the panels, and you pay a fixed monthly fee for the use of the panels. With a capital lease, you would keep the incentives. With an operating lease, the third party would keep the incentives and give you a lower lease payment when compared to a capital lease.

In conclusion, understanding the different types of solar financing available is an important step in making the switch to solar energy. By considering your budget, goals, and preferences, Uprisun Capital can help you find the financing option that best fits your needs. With the right financing, you can enjoy the many benefits of solar energy, including lower energy bills, increased property value, and a more sustainable future. Don’t hesitate to reach out the experts at Uprisun Capital using this link: uprisuncapital.com/contact-us/