When it comes to getting an electrical solar system or PV system on your roof, many businesses encourage leasing or other funky forms of financing. I encourage you to keep looking, as there are many better ways to get solar on your house.
To understand what I mean, let me explain the questionable financing I am referring to. You typically are presented with two options for financing your home solar projects, PACE or Ygrene type loans or leases:
PACE type loans: many vendors are promoting PACE or Ygrene loans which become a line item on your tax bill. If you take one of these loans, you will likely have to pay the whole system off before refinancing your home loan or at close of escrow when you go to sell. Many people who take out these loans do not know about these fine, but impactful details.
Leases: Read really carefully when taking on a lease. As with all leases, there is a total purchase amount to consider and an interest rate to consider. Our clients who have delved into these deals have been stunned by how high the actual interest was. In addition, the double whammy on leases is that you don't get the wonderful tax credits, the solar company does. Another thing to keep in mind is that when you go to sell, your buyer will have to qualify to take over the lease, resulting in a psychic reduction in value of the system and possibly decreasing your chances of selling your home at the price you want.
If you are interested in taking the first steps to see where your energy shortcomings are in your home before making any big decisions, check out CHERP, the Community Homeowner Energy Retrofit Project. You can visit their website here or look for more information in my next post all about them and how they can help you in the process of deciding on the best energy conservation projects and financing for your and your home.