08/30/2024 | Press release | Archived content
How to pay for home solar panels
Although solar panels can help you save money, they are not free to install. If you see an advertisement for "free solar panels," it is best to approach the offer with extreme caution, as it may not be related to a reputable business or program.
Most often, the best way to pay for solar panels is upfront, as this can lead to the lowest total investment costs and highest long-term savings. However, home solar installations without battery storage typically cost upwards of $15,000, so homeowners often choose to finance their project or explore other buying options.
Financing, solar leases, and other buying options
There are many ways to finance the costs of solar, and professional installers often offer multiple solar financing options with certified lending partners. With solar loans, it is important to understand every aspect of the agreement before signing, including interest rates, future cashflows, and whether the loan is tied to you or your property.
If a loan or purchase does not make financial sense, you may be able to choose third-party ownership (TPO) with a solar lease or power purchase agreement (PPA). In a TPO model, your installer maintains ownership of the energy system, while you make monthly payments, for either the panels or the electricity they produce.
Residential solar energy incentives and rebates
When you purchase a renewable energy system, you may be eligible for several solar incentives to lower total investment costs, depending on your location and project details.
Nationally, American homeowners may qualify for the Residential Clean Energy Credit (RCEC). Available at its current value through 2032, the RCEC can reduce total solar investment costs by 30%, redeemed as a credit on federal income taxes owed. Locally, many states, cities, and utilities also offer tax credits, rebates, and incentives to lower the costs of solar panels, batteries, and other home energy improvements.