While there are great rebates and incentives to entice people to make an eco-conscious choice about the way we power our homes, these perks don't exactly help until after we have already paid out of pocket for the system. So, how can you make the switch to clean, renewable energy with zero down payment? The answer might be easier than you think.
Going Solar for Zero Down
Although initial costs and savings will vary from company to company and depend on the size of the solar system you plan to install, your location, and the amount of daylight it will collect, many solar companies offer zero payments for your PV system.
By choosing a payment plan that's right for you, you can slowly pay off your solar panels month by month, just like you would to a utility company, but at a substantially lower rate. You won't have to worry about permitting, financing, costly installation, or the rebate process.
You can have your home up and running on clean, renewable energy sooner than you ever thought possible.
Since savings through solar energy works over the long-term, typically on a twenty year plan, by leasing your panels, you can get reduced rates, and find yourself on a fixed lease payment for the same amount of time.
And with the cost of traditional energy sources expected to spike over these next twenty years, you won't just be saving now, but you will be reducing your monthly electricity bill more and more each month until your lease is paid in full.
This all sounds great, but why are these companies willing to help me save on my electricity bill?
The Solar Power Purchase Agreement
Power Purchase Agreement (PPA) is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system on its roof or elsewhere on its property and purchases the system's electric output from the solar services provider for a predetermined period.
In short, while you are renting and locking yourself in to clean, renewable energy at a fixed price for however long your lease agreement lasts, the company you are leasing from is able to take advantage of the incentives and purchase the excess electricity created by the panels from your local electricity company.
It's a win-win, for you, the solar panel providers, and the planet.
The arrangement allows you, as the host, to forego the excessive upfront costs such as installation, permitting, system maintenance, and performance upkeep throughout the life of your lease.
By agreeing to the PPA, you are creating a partnership that allows you to purchase the energy generated by the solar service provider's panels, instead of purchasing and owning the panels outright.
While there are some contract providers that guarantee fixed rates throughout the duration of your lease, make sure that you find a quality installer that doesn’t include an annual price escalator.
By making sure that you find a quality provider to start with, you can avoid a lot of headache and a rise in the monthly cost of your lease.