Solar Financing Questions Homeowners Should Ask Before Signing
- Cash gives full ownership and full incentive claim eligibility.
- Loans spread cost; ownership and incentives usually stay with the homeowner.
- Leases and PPAs typically transfer incentives to the financier.
- Selling a home with a leased or financed system has specific steps.
- Always confirm interest rates, dealer fees, and escalators in writing.
Cash vs. loan vs. lease vs. PPA
Cash purchase concentrates cost upfront and keeps all ownership benefits. Solar loans spread payments while keeping ownership. Leases let a third party own the equipment; you pay a fixed (often escalating) monthly amount. PPAs let a third party own equipment; you pay for the energy produced.
Key questions to ask
What is the all-in cost? What is the interest rate or escalator? Are there dealer fees baked into the price? Who owns the system? Who claims tax credits or incentives? What happens at home sale — is the agreement transferable, and what does that process look like?
Practical caution
Loan offers sometimes include dealer fees that raise the cash-equivalent price. Lease or PPA escalators can outpace expected utility rate increases. Verify all terms in writing and consult a tax professional for incentive eligibility. HSRC does not provide tax, legal, or financial advice.
Get connected with a local solar contractor
Availability, pricing, licensing, services, financing options, incentives, warranties, production, and response times may vary by location and provider.
Frequently asked questions
Which financing is best?
There is no single best option. The right choice depends on cash position, tax situation, length of stay in the home, and risk tolerance.
Are dealer fees common?
Dealer fees are common in solar loans. Ask for cash and loan pricing side by side to see the impact.
What if I sell my home?
Owned systems usually add value or are easily transferred. Leases and PPAs require the buyer to assume the agreement or for it to be paid off.
Does HSRC offer financing?
No. HSRC helps homeowners get connected with local solar contractors. Financing terms come from the contractor and their lenders.
Related solar resources
HomeServicesResourceCenter.com provides homeowner-friendly solar information and helps connect users with independent local service providers. HSRC does not install, repair, inspect, or maintain solar systems directly, provide tax advice, provide financial advice, provide electrical advice, set contractor pricing, guarantee savings, guarantee incentive eligibility, guarantee system production, guarantee warranty coverage, or guarantee service availability. Solar costs, repair costs, savings, incentives, utility rules, licensing, financing options, warranties, production, and response times may vary by location and provider.