Best way to finance solar?

[Naptown]

Sunking is wrong bonaire is wrong in your case because you do live in CA and your prices are increasing over 5% a year last year, this year, and next year definately and likely forever but we have great weather, high gas prices, and bad air quality. Financing is a no brainer when you get your payment lower than your existing SCE payment. Its called an instant ROI which is especially nice if you can use somebody elses money to do it with. The first response by King is so far off in your case regarding sun hours I won't address it. Bonaire should fire his financial adviser knowing that the DOW is up 9.87% for the year. The DOW is the measurement of mediocrity in the investment world. All that being said you ought to be able to write off some portion of the interest. In your case with a relatively small bill unless you really like the house and plan to be there for 10+ years I wouldn't go solar and 5% is a good rate to finance solar at but you would still be outlaying more money per month than you are paying now unless you can get your out of pocket down to about $14,000. If you still feel like you need solar call a few local dealers and ask them if they can install a 5kW DC system for $19,000 and offer 0% financing for the 30% tax credit for one year (your finance payment and remaining electric bill ought to be just about what you pay now). Tell them the type of roof you have (comp, tile, etc), azimuth (direction of roof faces) and specs on your main electric panel (spaces, main max, etc). If they can they will if they can't they won't.

Actually he lives in SE PA

[SoCalsolar]

Russ now you are wrong

How different is an electric bill from debt?

[bonaire]

I know the Dow is up more this year. I still have a good chunk in HY bonds. Advisors are not great at helping either. Most were surprised by January and many doomers are saying get out. They started saying that a year ago.

You're clearly an installer and yes, SoCal rates are going up. It's a stupid tax for living in SoCal. Great weather and lousy government regulations equate to the mess you have there. If they can work a lease out with a reputable company, that sounds like the best plan. The leases include maintenance of inverters that buying requires the owner to warranty. It's just too bad that some areas of SoCal have high permitting costs. Not all, but some have noted that their municipality charges high hundreds to thousands for permits. It's like residents are in jail there. Nasty traffic, high taxes, crazy government...but the weather is great most of the time.

[Naptown]

Please reread post focus on the first line and keep in mind this was addressed to the original poster.

How different is an electric bill from debt?

Sorry I read that wrong.

[SoCalsolar]

I work in the industry

I work in the industry and it seems like insane is trying to make wine out of raisins. No matter how hard you squeeze your not going to get enough juice. The bill is just too low. You aren't using enough of the high priced power to justify a 20 year contract IMHO. Yes he could save $10 by going with a lease but it's likely he could save that by using more efficient light bulbs etc. If Insane's house has a comp shingle roof, 180 azimuth, no shade, and a large enough main electrical panel than it's a maybe at best. One other consideration that could tip the scales toward solar is if insane is sweating out the summer months unable to sleep at night because you are afraid you can't pay the SCE bill. In this case I wouldn't go solar unless I'm healthy, my house is set up perfectly and there is little chance I move in the next 20 years and I would go with a purchase its the only option in this case that presents enough reward to warrant the risk of a 10 year payout. I wish it was always a no brainer but it ain't.

[SKY888]

What options have you guys found to finance your solar Installations?
I'm looking at a 5% 10 year equity loan. I've got amazing credit but I am not happy with how even a 5% loan pushes out my Roi... do most installers offer any better options? any ot advice?

I asked my solar vendor if they can do zero percent financing.

I told them that I don't want to pay cash for the full amount, nor get a personal loan from the bank, or pay using my credit card. Personal loan/credit card has too high of APR for the solar system to be even worth it.


The vendor then offered me zero percent financing for three years. He asked me for $3k for downpayment for the 7.2kw system though....

sometimes these companies don't advertise that they offer zero percent financing.............but if you ask, and they really want your business, they'll offer it.

[FloridaSun]

The secret to wealth is to live below your means and stay out of debt. When you allow yourself to go into debt, you have enslaved yourself.

You got that right. Never felt so free as when I paid off all my debt years ago.

... it seems like insane is trying to make wine out of raisins.

ummm... bad example. In fact you can make wine out of raisins. Good buddy of mine used to own a raisin ranch outside of Fresno. If the raisins didn't dry correctly, got moldy, off they would go to make cheap wine.

[SoCalsolar]

I think the analogy fits

I think the analogy fits. The OP Can go solar but the financial benefit would be equal to the quality of the moldy raisin wine.

[FloridaSun]

I think the analogy fits. The OP Can go solar but the financial benefit would be equal to the quality of the moldy raisin wine.

true enuff

[Sunking]

Raisins Wine Recipe

2 pounds raisins
1 pound sugar
1 lemon
6 quarts boiling water

1. Place the raisins, sugar, and the lemon in a large stone or ceramic jar.
2. Add 6 quarts of boiling water and stir every day for a week, covering with a towel.
3. Then strain and bottle. Let sit for another 10 to 12 days.

[FloridaSun]

Raisins Wine Recipe

2 pounds raisins
1 pound sugar
1 lemon
6 quarts boiling water

1. Place the raisins, sugar, and the lemon in a large stone or ceramic jar.
2. Add 6 quarts of boiling water and stir every day for a week, covering with a towel.
3. Then strain and bottle. Let sit for another 10 to 12 days.

works with prunes too

drink liberally, helps to recover from the mistake of financing a PV system

[russ]

Just like a car - zero percent financing simply means that part of the cost is covered elsewhere.

That is a cost to the dealer - nothing more or less.

[infoseeker]

re: Finance charge

Just spoke to a Sunpowoer Dealer, and her quote included a line that offered me 0% Finance (no fees) to cover my Federal Tax Rebate for solar install, need to pay off the balance within a year. Will be getting more information on how this financing work and will post details. Quote was for a Purchase. So, far seems like a good deal.

[SolarQuadrant]

What options have you guys found to finance your solar Installations?
I'm looking at a 5% 10 year equity loan. I've got amazing credit but I am not happy with how even a 5% loan pushes out my Roi... do most installers offer any better options? any ot advice?

Financing would really depend on whether it works for your particular scenario and local market conditions; we are leaning toward a fixed rate equity loan too.. for a approximately 7K annual production AC system with 20 year pre-paid amount of $14K; here are the proposed number's; any tax deductions would be a fringe benefit too. This is coming out to be lower than our monthly utility bill.

Months 180
Annual Interest Rate 3.75%
Principal $14,000.00
Monthly Payment $101.81
Total Interest $4,326.01
TCO $18,326.01

[SoCalsolar]

These numbers work

These numbers work in CA not sure where else. This situation looks like Solar would pay less each month(instant ROI), freeze a portion of their bill from escalating prices(avoid inflation), pay for 180 months get 60 months for free(Groupon effect) oh and use none of their own money which they can deduct the interest. If your solar payment costs more than your original electric bill or heaven forbid you have to use your own money you ought to stop and think maybe there is a better use for this money. Don't force solar but when it fits your budget and your lifestyle dive in.