Residential Financing Options
Purchase | Loan | Lease | PACE
Renting: Personal Lease Financing
Buyout: Fair Market Value (FMV) Buyout is required at the end of the term. Can be 20% or more
Transfer: New Owner credit checks. Lease holder determines their best financial position
Savings: The finance company gets all available financial incentives with many of them upfront
Ownership: Property Tax Loan
Buyout: At the end of your loan term there are no further payments or costs
Transfer: Property taxes transfer to the new owner per local existing tax laws
Savings: You receive available financial incentives
Maximizing the financial benefits for homeowners, simplifying the application process, and ensuring performance guarantees.
Whether you make your home improvements with up-front cash purchase, property tax loan, or a personal lease; you will likely save money on your utility bill. However, the financial benefits of owning your system – either through property tax loan or a cash purchase – highlight the clear advantages of ownership. Property tax loans combine the benefits of – no down payment, energy cost savings, hassle-free maintenance and performance guarantees – with the financial upside from solar ownership.
The federal government currently provides a solar panel tax credit equal to 30% of the system cost for homeowners who buy and own their solar panel system. On an average $30,000 solar electric panel system, the government offers a $9,000 tax credit which can be carried forward if you do not use it all in the first year. These tax incentives belong to the homeowners who purchase their system, but in a lease, third-party finance companies are the direct beneficiaries of the credits because they are the ultimate owners of the systems.
General information purposes only: Consult a tax professional regarding your specific circumstances
Property Tax Loan vs Personal Lease Financing
| Property
Tax Loan |
Personal
Lease |
|
$0 Down Option |
YES | YES |
Savings From Day 1 |
YES | YES |
Simple Application Process |
YES | YES |
System Performance Guarantee |
YES | YES |
System Warranty |
YES | YES |
Real-Time Performance Monitor |
YES | YES |
No Annual Inflation Escalators |
YES | ? |
Home Value Appreciation |
YES | ? |
No Prepayment Fees |
YES | No |
Receive Federal / State Tax Credits |
YES | No |
Tax Incentive Form Preparation |
YES | No |
Build Equity in Your System |
YES | No |
Maximize Financial Benefits |
YES | No |
