Loans
Solar Leasing (Pre-Paid Agreement) Versus Financing
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|
Finance |
Lease |
|
Terms |
1-20 years |
10-20 years |
|
Payments |
Fixed Amount |
Fixed, but can escalate over time |
|
How You Save |
Utility bill is more than the monthly loan payment |
Lease payment is lower than the monthly utility bill; may not be the case with escalation lease payments |
|
Ability to Pay Down Lease/Loan |
Wheelhouse solar loans come with the option to make a large one-time payment and have the loan re-amortized for lower payments |
Due to the utility inflation rate assumed in the lease model and the payment escalator, lowering the lease payment may not be possible |
|
Home Value |
If the system is paid off, it may add value to the home and be considered as an addition or upgrade |
When the lease is satisfied, may add value to the home and can be considered an addition or upgrade. However, the system is not owned by the homeowner and could be a hindrance when selling or buying a home |
|
Equipment Maintenance |
Homeowner assumes the cost for maintenance and repairs |
Lease company assumes the cost for maintenance and repairs during the lease period |
| Factors to Consider | Make sure the size of the system is tailored to your usage. Smaller systems equates to a smaller loan payment | Make sure the utility inflation rate and the payment escalator closely aligns with your ability to pay the lease amount over time. |
| Tax Incentives and Credits | Homeowners can receive any available State incentives and Federal tax credits | Lease company receives any available State incentives and Federal tax credits |
| Questions? | Call 619-297-4835 or go to our contact us page. |
For Your Information
- For assistance, please contact our Phone Center at 619-297-4835.
