RESIDENTIAL FINANCING
Homeowners in New York now have many financial options when 'Going Solar'. Your selection of a financing option may affect who receives the incentives. FULL REPORT
Cash
Homeowners and businesses can purchase a solar PV system with cash. In this option, the homeowner or business would receive 100% of all available federal, state, utility, or other incentives.
Lease
A solar lease is a financing structure whereby a third party developer or financier develops, purchases, owns, and operates a solar PV system for an end user who pays a set monthly rate for the use of the solar system. Typically the monthly rate for a solar lease is the same every month regardless of how much electricity is produced by the solar PV system, unless there is a lease escalator whereby the end user’s lease payments increase by a marginal percentage each year. The end user does not have to provide any upfront capital for the solar PV system. However, the third party developer or financier takes a portion of
the available federal tax incentives because they require a higher return on investment. The remaining majority of incentives are then built into the monthly lease price. Solar lease terms typically last between 10 and 25 years. Many solar installers provide their customers with a solar lease option.
Power Purchase Agreements (PPAs)
A Power Purchase Agreement, or PPA, is a financing structure whereby a third party developer or financier develops, purchases, owns, and operates a solar PV system for an end user who pays a set price per kilowatt hour (kwh) for the electricity produced by the PV system. The end user typically does not have to provide any upfront capital for the solar PV system. However, the third party developer or financier takes a portion of the available federal tax incentives because they require a higher return on investment. The remaining majority of incentives are then built into the PPA price. PPA terms typically last between 10 and 25 years. Many solar installers provide their customers with a PPA option.
Loans
Homeowners and businesses can purchase a solar PV system with a loan. In this option, the homeowner or business would receive 100% of all available federal, state, utility, or other incentives. Tax incentives will depend upon the tax liability of the end user.
The Sungage Financial Solar Loan provides financing to homeowners for solar PV projects through qualified Sungage solar installers.
To learn more about the Sungage Financial Solar Loan please visit their website here or call (844) 4-SUNGAGE.
SunPower, in partnership with Enerbank, are providing combo-loan financing for Solar PV projects
utilizing SunPower PV panels through qualified SunPower/Enerbank solar installers.
To learn more about the SunPower/Enerbank SolarNow Financing Program please visit their website here
or call 1-800-SUNPOWER (1-800-786-7693).
The GJGNY On-Bill Recovery Loan is an instrument that allows customers to finance renewable energy improvements through a charge on their utility bill.
The GJGNY Residential Smart Energy Loan provides financing for renewable energy improvements,
including solar PV and solar thermal, on existing 1-4 unit residential buildings by a participating NY-Sun Incentive Program or PON 2149 contractor.
To learn more about the GJGNY Residential Smart Energy Loan please visit their website here.