Solar 101: How to pay for your rooftop solar investment

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From pv magazine USA

You’ve got a contractor, you found your solar panels and inverter, you understand the taxes, you’ve got the project priced, and you’re ready to take care of your solar power plant for the long haul. How’s that for a Solar 101?

The next question is, where’s the money going to come from to pay for all this?

For most things we buy, this is an easy answer: Cold, hard cash. However, the out-of-pocket cost for a solar power system is pretty high, so the purchase is a lot like buying a car. And because solar panels pay dividends, a better analogy might be investing in a financial product.

The key is, your solar power plant is going to generate a commodity — electricity — which has a value that can be readily determined. And because of electricity’s highly quantifiable nature, many banks and other financial parties have an interest in being part of your solar power project. Even so, cash is king.

To keep reading, please visit our US website.

 

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