Tips to finance your solar system. When people first consider solar panels for their home, most are immediately apprehensive about cost. Although price (along with quality and value) is absolutely a consideration, there are five different financing options made available by RevoluSun, creating affordable solar for almost any homeowner.
Of course, the first option is to utilize an underperforming asset such as cash from a checking or money market account. Since most solar power systems generate a substantial ROI, this can be a better way to use your money. Furthermore, the value increases because RevoluSun offers a significant discount incentive to use cash or check to purchase a solar power system outright. Additionally, the system owner would have immediate access to free electricity and the SREC income becomes a passive income stream for the next ten years!
2. Home Equity Line of Credit
The second option is a Home Equity Line of Credit (HELOC) used to help pay for the system, as it would represent a home-improvement project. In most cases, a homeowner who has access to equity in their home can use that line of credit for the solar power system and pay it back even more quickly than required to save additional interest charges. Just like option 1, this is treated as a cash purchase where there is a significant discount.
3. SunGage Solar Loan
RevoluSun has partnered with SunGage Financial (backed by Digital Federal Credit Union) to offer a couple different appealing solar loan options. There are 4 term options available from 5, 10, 15, and 20 year contracts with varying fixed interest rates. With each option there is a dual or combo loan feature, where the tax incentives (the Federal Income Tax Credit and the State Income Tax Credit) can be financed with no interest accruing nor any payments due for the first 12 months. The balance of the loan minus those amounts will have interest, but can also be paid early with no penalty and enabling homeowners to avoid future interest charges.
4. SunEdison Solar Loan
RevoluSun has also partnered with SunEdison to offer more loan options. It is very similar to SunGage’s loan where there are also 4 terms available and with each option there is a dual or combo loan feature, where the tax incentives (the Federal Income Tax Credit and the State Income Tax Credit) can be financed with no interest accruing nor any payments due for the first 12 months. The balance of the loan minus those amounts will have interest, but can also be paid early with no penalty and enabling homeowners to avoid future interest charges. Sun Edison augments their loan program with a Power Production Guarantee (at a small extra charge).
5. SunEdison Power Purchase Agreement
The SunEdison Power Purchase Agreement (PPA) is structured similar to a lease. SunEdison will take a third party ownership position, and will pay for the system up front and the homeowner will pay SunEdison a reduced rate for the power generated, for 20 years at a low, fixed rate (varied by system efficiency) for each kilowatt of electricity produced and consumed. Any electricity that is produced and not consumed in one month rolls over as a credit to the next month. However, if there is more electricity consumed than produced in a given month, the difference in kilowatt hours is paid to the utility (ex. National Grid, Eversource) at their current rate.