There are a variety of ways to offset the cost of solar installation
Our funding specialists have the experience to help you find the one that is right for you.
As an industry leader, we are closely connected to a wide range of financial institutions that offer competitive rates for solar power systems. A “zero downsolar loan”, works much like a traditional loan with no out-of-pocket costs, while also providing you with the opportunity to take full advantage of all available federal and state incentives.
Ownership provides the most savings and incentives
The ITC (Federal Investment Tax Credit) can reduce your tax burden if eligible. If your solar electric system is installed prior to the end of December 2019, the ITC is 30%, reducing to 26% in 2020, reducing to 22% in 2021 and ending for the residential market in 2022. We will provide you with all the documentation your accountant needs to take advantage of the ITC.
Solar Renewable Energy Certificate (SREC’s)
An additional ownership incentive in New Jersey is the Solar Renewable Energy Certificate (SREC’s). For every 1,000 kw that your system produces, you earn one SREC and can sell it on an open commodity market for a period of 10 years. The SREC value changes daily and the SREC clock starts from the date you receive permission to operate your system from your utility. This is non taxable income to you and, if you finance your system, your SREC income typically offsets all or part of your loan payment. For more information on the SREC market, please visit www.njsrec.com or www.flettexchange.com. Most ownership programs offer a return on investment (ROI) typically within 4-7 years.
Homeowners in Pennsylvania also have a growing SREC program that is structured differently than other states. If you live in PA and want to own a solar system, please give us a call to learn more.
PPA (Power Purchase Agreement)
A PPA (Power Purchase Agreement) is a type of lease which allows you to purchase power at a reduced rate for a period of 20-25 years, during which you, the property owner, make a monthly payment for the power produced to the financing company which essentially rents the system and all the electricity it provides to you. In most cases, the homeowner enjoys a 10 to 30% reduction in electricity cost. A Solar Lease allows you to rent a solar electric system for a period of 20-25 years depending on the leasing program, and pay a monthly fee instead of the power that is produced. The PPA and/or Leasing company gets to keep your tax credit and SREC income.