Finding solar financing to install a solar panel system on your home can be an extremely difficult process, even with all of the grants and tax breaks offered to consumers these days. The key problem is finding the initial capital to put down on the project before collecting all of your government rebates and tax credits resulting from being energy conscious. Unfortunately, even with the constantly dropping prices over the last several years, installing solar panels is still very expensive! Who can afford to put $15,000 down on a solar panel system during a rough economy with very little home financing available anymore?

Fortunately there are several options. Many homeowners choose to take out energy efficient mortgages or home equity loans to build up the initial capital. Others, however, prefer to utilize Property Assessed Clean Energy (PACE) solar financing programs where they are available, assuming the homeowner doesn’t have a mortgage with Fannie Mae or Freddie Mac. However, there are several options that don’t require a loan at all. First amongst these options is straight-up leasing a solar panel array for your home. Much like a car or apartment, leasing the solar panels means you pay a flat monthly rate to use the electricity that they provide. In essence you fix your utility bills at a lower rate. Another options similar to leasing your solar panels is the power purchase agreement (PPA), wherein you lease the power rather than the equipment, giving you a variable monthly rate based on how much power was produced. What you do with that power, such as feeding it back into the grid, is up to you.

Some companies have recently released $0 down on installing home solar panel arrays, but it will be some time yet before those plans become a common sight. And since many government programs are retroactive, like the tax credits, it is important to secure whatever funding you can beforehand. Try to avoid taking out additional loans or mortgages if it is possible to avoid them, always look for financing options that won’t cost you an arm and a leg in the future. You’ll be grateful that you did.