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Solar loans: how financing works
Swap your electric bill for a fixed payment, and own the system.
The idea
A solar loan covers the system cost. You make a fixed monthly payment for a set term. The system is yours from day one.
Why it works
The loan payment replaces all or most of your electric bill. Your power cost becomes a number that does not change with utility rates.
What to compare
Interest rate, term, any dealer fee built into the price, and whether there is a penalty for paying early. Ask for the total you will pay, not just the monthly figure.
Ownership matters
You own it, so you handle repairs under the warranties. You also get the New Jersey perks, like the sales tax exemption.
Compare it to a PPA
A loan usually costs more per month than a PPA at first, but you own the system at the end. A PPA costs less up front and has no ownership.
Keep reading
- PPA vs solar lease: what is the difference?Both mean little or nothing down. Here is how they differ and who each one suits.
- Is paying cash for solar worth it in New Jersey?You own it, you keep the savings, and New Jersey stacks a few extras on top.
- New Jersey net metering, explainedHow your meter turns extra solar power into credit on your bill.