Have you ever thought about having your very own solar system — that is, solar panel system? You may see ads urging homeowners to “go solar” — use renewable energy, buy less electricity from the utility and maybe get a tax break. There are several ways to get solar power at home: you can buy a rooftop system, lease a system, or sign a power purchase agreement (PPA) to buy power a system produces. If you’re thinking of using solar power at home, consider the costs and benefits of the arrangements:
If you buy, you:
- pay the cost of the entire system, perhaps by financing through a home equity loan, a loan from the company or your bank
- can use all the power the system produces
- may be eligible for federal, state or local tax credits or other incentives
If you lease, you:
- sign a contract to use a system a company installs on your home
- can use all the power the system produces
- pay a monthly leasing fee that may increase over time
- probably aren’t eligible for tax benefits or incentives
If you have a PPA, you:
- sign a contract to buy power from a system a company installs on your home
- don’t automatically get all the power the system produces
- pay for power at a rate the PPA provider sets, which may be lower than the utility company’s rate
- probably aren’t eligible for tax benefits or incentives
Use our information and tips to learn more about home solar options and making choices that are good for the environment, and your wallet.
