WHICH SOLAR OPTION IS BEST FOR ME?
Cash is THE BEST Return on Investment
The best way for a homeowner to maximize their solar savings potential is with an upfront cash investment using cash.
BUT WHAT IF I DO NOT HAVE CASH AVAILABLE?
If you do not have the money already available, you can get cash in a few savvy ways. The best way to do this is by using the equity in your home. A home equity line of credit (HELOC) allows you to borrow from the equity in your home at very cheap rates. A HELOC is fantastic because they offer very minimal application fees AND very low interest which is based on the federal interest rate.
NOTE: Solar loans cannot compete with a HELOC when it comes to lender fee and interest rate. The only solar loans with low interests have high fees, and the only solar loans with low fees have high interest rates.
Another super savvy way to get large amounts of cash is a cash-out refinance. This is a lot more case specific where it is only advisable for certain situations. In a nutshell, if your mortgage rate is much higher than the current rate, you can get a new mortgage with significantly lower interest while simultaneously getting a big bag of cash in your pocket. This is used by many people to pay for large renovation projects, pay off credit card debt, reinvesting, and the list goes on.
IMPORTANT: Re-financing your mortgage is a big decision that should be discussed with a mortgage broker you trust.
The easiest way to get solar (without cash)…
Other than buying with cash, hands down the easiest way to get solar is with a PPA or lease. With only a signature you will be saving 30-50% every month using cheaper, cleaner energy. No install cost. No money down. No lien. No debt. No need to add the system to your homeowner’s insurance or file it in your taxes either because the third party company owns the system and so they file the taxes and provide their own insurance policy. All you have to do is sit back and think about what you’re going to do with all that money you’ll save... everything else is taken care of.
The CHEAPEST and safest way to get solar…
Get a small system if you want the smallest risk. With a small system you get ALL of the benefits of solar while minimizing the risk. How..?
The total investment is less than $9,000 so the expense is smaller than larger systems. The return on investment is only a little longer than a larger system with the same sun exposure. The resale value of the home may increase disproportionately in your favor compared to the increase in resale value for the same home with a larger system.
The downside of a smaller system? Opportunities that exist today like Net Metering (NEM), the Federal Tax Credit, and other State Incentives that exist today may be gone in the future so you may regret not getting more bang for your buck later with a bigger system today. Also, the average price per Watt decreases as the system size increase because of the typical benefits of bulk pricing on equipment and labor.