It’s a fantastic choice for improving your home and financial situation. Now that you’ve selected a contractor, let’s discuss the different payment options available. This is an important part of the conversation, as there are four major ways to pay for this improvement:


  • With this option, you pay the entire cost of the system once it’s installed and complete. Never pay a contractor for unfinished work, and only provide a deposit of $1000 or a maximum of 10% (as per CA contracting law).
  • Paying cash can eliminate or greatly reduce your electric bill immediately after installation. You won’t have any monthly payments, and you can apply the 30% tax credit directly to your tax bill.
  • Consider this if you have cash on hand and a significant tax appetite.
  • Advantages include no interest payments and the system paying for itself faster, resulting in the best savings. However, it requires a large upfront investment and ties up cash for 5-8 years


  • Most homeowners opt for a loan to pay for their solar arrays, spreading the cost over time. The term and interest rate of the loan are crucial considerations.
  • Monthly payments are often less than the savings received, and you’ll own the system outright at the end of the loan term.
  • Each house requires different equipment, so loan sizes are customized to the homeowner.
  • With some loans, the savings can pay off the loan in 15 years or less, and monthly payments remain consistent.
  • Consider options like HELOCs (Home Equity Lines of Credit) or loans from Credit Unions, which typically offer lower interest rates and savings passed on to members. Other lenders specializing in home improvements and energy upgrades are also available.


  • Leasing was popular from 2005 to 2012 and still constitutes a significant portion of solar financing. It’s ideal for those without a tax appetite.
  • The leasing company owns the solar array and claims the tax credit, offering lower monthly payments in return. They bill you each month for what you owe.
  • The lease term is typically 25 years.


Switching to renewable energy helps homeowners take control of their energy usage and reduce strain on the aging electric grid. Contact us today and take control of your energy.