The Three Options
In the Solar era following the Inflation Reduction Act of 2022, the previously available options have been narrowed down to three primary choices: the Power Purchase Agreement (PPA), Cash Purchase, and Solar Loan or Lease. Each option offers distinct advantages, which will be summarized below.
Solar Options
Option 1
Power Purchase Agreement (PPA) - Purchase the power generated by the solar panels rather than the panels themselves. This option avoids the upfront cost and the responsibility of maintaining the panels.
Option 2
Cash Purchase - Home owners buy the solar panels outright with cash, debit card, credit card, or check. This option offers the best return on investment and immediate ownership, but requires a large sum of money upfront.
Option 3
Solar Loan or Lease - ​Solar loans or leases are ideal for people who plan to stay in their home for more than ten years, live in an area with high electricity costs, and don’t have the upfront cash to purchase solar panels all at once.
Pros & Cons
As with all things there are pros & cons to every choice. One of the many great things about Solar is that whichever choice one makes its a step towards energy freedom:
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Power Purchase Agreement (PPA)
Pro: Zero upfront cost Con: Lowest Savings
Pro: Energy bill Savings Con: Does not own equipment
Pro: Homeowner doesn't handle maintenance Con: Homeowner don't get incentives
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Best for: Homeowners who don’t have upfront cash for purchase, don’t have taxable income or plan to sell their house within 10 years​
Most popular
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Cash Purchase
Pro: Best Solar savings and return on investment Con: Requires large sum of up front money
Pro: No monthly Solar payment Con: Need sufficient tax liability for full tax
Pro: Homeowner gets incentives Con: Responsible for maintenance
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Best for: Homeowners with the upfront cash on hand in areas with high electricity rates 2nd most popular
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Solar Loan or Lease
Pro: Substantial energy bill savings Con: Substantial dealer fees
Pro: Increases home value once paid off Con: 30% 18 month balloon payment
Pro: Homeowner gets incentives Con: Difficult to sell home if loan isn't paid off
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Best for: Homeowners who don’t have upfront cash for purchase but want the best solar savings possible
Least popular
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