Rooftop Solar Energy System

Financing Rooftop Solar Energy System

As homeowners, they convert homes into clean, green energy, but the only problem is the cost. While we talk about today’s era, the cost and pricing of solar installation are between $15000 – $35000, and it depends on roof type, property, area, and how much electricity the system produces.

Usually, homeowners don’t pay the total cost of residential solar, which is done by federal and state incentives. The federal solar investment credit(ITC) is 30% of the total cost of a home solar system.

Many states offer tax credits and incentives to help bring the cost of owning within reach.

Solar Finance Partner

If you can’t pay cash, there are various ways, like a loan or lease system, and others are mentioned below.

Personal loans:

Offer fixed interest rates and monthly payments, so you always know how much you pay. You can take out a long-term loan to pay off the cost of your solar panel installation over many years. Still, short-term (12-18 months) loans, also called bridge loans, allow you to use the ITC and state credits immediately instead of waiting until you file taxes. You can also combine this short-term loan with a long-term loan that covers the remaining cost of your installation.

Residential property assessed clean energy (PACE) loans:

Some states allow loans tied to your property, enabling you to repay your loan as part of your annual property taxes. If you sell your home, the loan will transfer to the homebuyer.

Home equity loans:

Work like personal loans, with fixed interest rates and monthly payments, but they let you borrow against your home.

Home equity lines of credit:

Credit cards offer lines of credit you can borrow against, but they often come with variable interest rates, so you can expect the amount you pay to change in time.

Government loans:

Government loans help all owners and businesses install solar systems on properties. Owning any property enables you to get solar panel systems and other clean energy upgrades up to 15% of your property’s value. Suppose the owner is purchasing or refinancing a home. In that case, the Home Style Energy Mortgage Program and the Federal Housing Administration’s Energy Efficient Mortgage Program can help you install solar panels at the same time.


You can rent a solar energy system, like leasing a car, to reduce your upfront expenses. Under this arrangement, a solar installer, finance provider, or other third party owns and maintains the system you put on your roof. You will pay a fixed monthly rate to the company that owns the system. Check with your insurance company to see if your policy covers leased panels. A lease is typically 20-25 years. If you sell your house, the way the lease gets transferred to the new homeowner will be determined during the sale.

Power purchase agreement (PPA) :

This is a lease by another name. The difference is how much you pay and to whom. Under a solar PPA, you purchase the electricity generated by your system back from the system owner at a set rate per kilowatt-hour. It is often offered with no money down, so you can quickly see immediate monthly savings on your energy bill.

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