Part 7: Solar Financing: The Key to Owning Your Energy Future

Part 7: Solar Financing: The Key to Owning Your Energy Future

If you’ve been considering solar energy for your home, one of your biggest concerns might be affordability. Many homeowners assume the upfront cost of installing a solar energy system is out of reach—but that’s no longer true. Solar financing makes installing solar with little to no upfront cost possible, allowing you to start saving money immediately.

In this guide, we’ll explore how solar financing works, why it’s the wisest option compared to solar leases and Power Purchase Agreements (PPAs), and how choosing the right financing plan allows you to take control of your energy future.

Solar Financing vs. Leasing vs. Power Purchase Agreements (PPAs)

Not all solar options are created equal. Understanding the differences between solar financing, leasing, and PPAs is crucial to making the right choice for your financial future.

  1. Solar Financing (Loan)
  • Ownership: You own the system.
  • Federal Tax Credit: You claim the 30% solar tax credit.
  • Monthly Costs: Fixed loan payments, often lower than your current NV Energy bill.
  • Long-Term Value: Adds equity to your home and shields you from rising rates.
  1. Solar Leasing
  • Ownership: The leasing company owns the system.
  • Federal Tax Credit: The company—not you—claims the credit.
  • Monthly Costs: Fixed lease payments that increase over time.
  • Long-Term Value: No equity or added home value.
  1. Power Purchase Agreement (PPA)
  • Ownership: The solar provider owns the system.
  • Federal Tax Credit: The provider claims the credit—not you.
  • Monthly Costs: You pay per kWh, with rate increases over time.
  • Long-Term Value: No equity or added home value.

The Bottom Line:

Solar financing allows you to reap the full financial benefits of going solar while leasing and PPAs put you in the position of renting energy instead of owning it.

Which Solar Option Is Right for You?

Here’s a quick comparison of your solar investment options to help you make an informed decision:

Feature Solar Financing Solar Lease PPA
Ownership Yes No No
Upfront Cost Low/None None None
Tax Credit Eligibility Yes No No
Monthly Payment Fixed Loan Payment Fixed Lease Per kWh Used
Maintenance Homeowner Leasing Co. Solar Provider
Long-Term Savings Highest Moderate Moderate
Home Sale Impact Positive Lease Transfer PPA Transfer

Why Solar Financing Is the Smartest Choice

Investing in a solar energy system is more than just reducing your energy bills—it’s a strategic investment in your home and financial future. With system costs ranging from $20,000 to $60,000, solar financing makes ownership possible with manageable monthly payments.

Benefits of Solar Financing:

  • You Own the System: Claim the 30% federal tax credit and build home equity.
  • Lower Monthly Costs: Your fixed payments are often lower than your current NV Energy bill.
  • Equity and Home Value: Solar panels increase your home’s resale value.
  • Protection from Rising Rates: Lock in predictable payments and avoid utility rate hikes.

Solar financing allows you to reduce energy costs today while building long-term financial security for your family.

Common Solar Financing Mistakes to Avoid

To make the most of your investment, avoid these common pitfalls:

  1. Not Understanding Loan Terms: Carefully review interest rates, repayment terms, and hidden fees.
  2. Ignoring the Tax Credit: Some financing options require you to apply the 30% tax credit to your loan within 18 months.
  3. Choosing the Wrong Loan: Consider whether a low-interest loan or minimal upfront costs better align with your goals.
  4. Resale Complications: Ensure your solar loan is assumable to make your home more attractive to buyers.

How the Federal Solar Tax Credit Works with Financing

The 30% Federal Solar Tax Credit (ITC) directly reduces your tax liability, making solar more affordable.

Example Calculation:

  • If your solar system costs $30,000, the tax credit equals $9,000.
  • If you owe $10,000 in taxes, the credit reduces your balance to $1,000.
  • If your tax liability is less than the credit, the unused amount can be rolled over to future tax years.

Tip: Consult a tax professional to ensure you maximize the credit effectively.

Structuring Your Solar Loan

Most solar financing plans assume you’ll apply the 30% tax credit to your loan by month 18. Doing so helps maintain fixed monthly payments. If you decide to use the credit elsewhere, your loan payment may increase—but it’s still likely to be less than your rising NV Energy bill.

Why Now Is the Best Time to Go Solar

Waiting to go solar could cost you more in the long run. NV Energy rates are climbing, and the demand for solar is driving up installation costs.

By financing your system today, you can:

  • Lock in today’s prices and incentives.
  • Claim the 30% tax credit before potential reductions.
  • Protect yourself from inevitable rate increases.

Let’s Find the Right Solar Financing for You

Choosing the right financing plan doesn’t have to be overwhelming—I’m here to help. During your free solar consultation, we’ll:

  • Review your financial goals.
  • Discuss your energy consumption and needs.
  • Find the financing plan that best fits your budget and lifestyle.

Take Control of Your Energy Future Today

Solar financing isn’t just about saving money; it’s about taking control of your future. By owning your solar energy system, you lock in predictable costs, protect yourself from rising rates, and build lasting value for your home.

“Energy Independence Starts with an Honest Conversation”



Leave a Reply