Over the past few months, we’ve blogged about some of the hidden dangers of using leases and power purchase agreements (PPAs) to finance new solar photovoltaic (PV) installations.
But if solar leases are “usually” a bad idea – and if you don’t have a lot of money – what is the best way to finance your San Diego solar installation?
Well – it’s worth pointing out that you don’t actually need a lot of money.
Average solar installation costs in the San Diego area range between $10K and $15K. What’s more, solar panel prices keep falling.
But… not everyone has $10K lying around. So what should you do?
Low Interest Loans Make Solar Installations More Affordable
At Sunline Energy, we typically recommend that customers apply for low interest loans to finance their San Diego solar installations.
We also recommend that you purchase a system large enough to cover all of your electricity needs – even if this means going slightly over budget. Remember that solar is an investment that will continue paying handsome dividends for decades.
But why exactly do we recommend solar loans over solar leases?
With a well-structured loan agreement, your monthly loan payments will be less than what you currently pay to SDG&E. In other words, you receive a new solar installation plus instant monthly savings starting on Day 1.
Once the loan is fully paid off, you have no more bills. Just free, clean energy.
Your only expense over the next 20, 30, or 35 years is maintenance, and even this is relatively cheap. With no moving parts, solar panels can continue generating green electricity for decades with minimal upkeep. Some experts even question the need to clean solar panels periodically.
How to Apply for Loans to Finance Your San Diego Solar Installation
At Sunline Energy, we’ll help you apply for a solar loan with attractive terms and conditions.
But to be perfectly honest, even loans with ridiculously high interest rates can still bring you substantial savings.
Remember that the goal is to pay less money every month than what you currently pay to SDG&E.
So if your monthly utility bill is $200 and your solar loan repayment is only $199/month – you come out ahead.
As utility prices continue to rise, your monthly savings also go up since your loan repayments stay constant – until the debt is fully paid off.
There are a lot of numbers and figures in this blog – so we just wanted to end it with 3 quick takeaways:
- When you pay for your system with a solar lease, it’s 100% free, but you don’t enjoy the financial returns that true solar ownership offers.
- When you pay for your system with a solar loan, you enjoy immediate savings starting on Day 1. And once the loan is paid off, your expenses shrink to $0 a month (provided you have a large enough solar installation).
- At Sunline Energy, we’ll walk you through the entire process and hold your hand every step of the way – regardless of how you choose to finance your San Diego solar installation.
If you’re ready to get started, contact us today for a free consultation. You pay absolutely nothing for an on-site property evaluation and customized proposal.
