If you live in Massachusetts and are in interested in powering your home with solar energy, you are in luck. With all the generous incentives available through Massachusetts and the federal government, it has never been a better time to make the investment. However, solar typically requires a large upfront cash outlay; money most people don’t have readily available. Financing is one of the biggest hurdles to solar adoption in the state. Find out ways some of our customers have secured this funding.
Financing Methods for Upfront Purchase:
- Home Equity Line of Credit – Home equity is the cheapest and most popular method of financing for a PV installation. With prices as low as 3% and the payback of a solar electric system being relatively quick (4 to 6 years), it makes sense for those with equity in their homes.
- Upfront SREC Option – Aggregators are willing to give you an upfront cash payment in exchange for selling the value of your Solar Renewable Energy Credits (SRECs) over the next 10 years. For an average sized system, this would be about $6,250 that you can use toward your solar investment.
- Refinance Existing Mortgage – Mortgage rates are at an all-time low. If you haven’t already done so, it might be a good time to refinance your mortgage, adding the solar expenditures.
- Same-as-Cash Financing – This type of unsecured financing offers 6 month or 12 month 0% interest financing, up to $45,000. This allows customers waiting on next year’s tax refunds to fund a project now with no interest and no payments.
- Low-interest Energy Loans – Through our partnership with a local bank, we can help facilitate secured and unsecured home improvement loans over a 5 to 20 year terms with rates as low as 6.95% with no prepayment penalty. This is a good choice those who do not have a large amount of equity in their homes.
You don’t have to own the system to enjoy the benefits of clean energy. Many of our customers decide a solar lease or a power purchase agreement (PPA) structure is a better fit for them. With this type of structure, system maintenance, insurance, and performance are guaranteed by the lease company. Through a PPA, a customer can make low, monthly payments (oftentimes lower than their electric bill) over 15 or 20 years with a zero down option. Alternatively, a customer can choose a prepaid PPA where they make a large, upfront payment at a discounted rate.