Use a PPA / Lease / PACE for your solar and Pay Nothing Out of Pocket for Solar on Your Roof.
Planet Solar is one of the pioneers of three brand new ways to Go Solar – Leasing your solar equipment, the Solar Power Purchase Agreement (PPA), or easiest of all, the Property Assessed Clean Energy (PACE) financing. All methods result in you paying very little or nothing up front*, enjoy immediate savings from your current electric bill, and the satisfaction of getting your clean, green electricity directly from the sun. And with Planet Solar, it couldn’t be easier.
What sets us apart from any other solar company is that we are a fully independent company. We aren’t owned by a finance company or panel manufacturer, or part of some program that requires our exclusivity. This means that we can offer you, our valued client, the best quality, value, and financial solutions for YOUR unique situation.
The SOLAR LEASE
It is as easy as it sounds. A company (like the solar panel manufacturer) will pay us to install their panels on your roof, and you lease the equipment from them for a flat monthly fee. It saves you money, because we guaranatee that your lease payment will be significantly less than you currently pay for electricity. You enjoy free power from the sun, and because the utility companies raise their rates an average of 6.1% per year, your savings get better and better each year.
Sunpower Corporation, one of the most respected solar panel manufacturers in the world, offers a solar lease that is highly competitive. Your Planet Solar consultant will answer any questions you may have, to see if the solar lease is right for you.
The SOLAR PPA
(California, Puerto Rico)
Most solar financing is now done using a Power Purchase Agreement. It’s a simple concept, and works exactly like your current utility agreement, only for less money. With your utility company, you use the electricity for your home or business, and pay for the electricity you use. It’s the same with a Solar PPA. You use the electricity produced by the solar system on your roof, and pay for the electricity that you use – same thing. However, with a PPA, the electricity from the solar panels is much less expensive, and comes from clean solar energy, not a dirty gas or coal-burning power plant.
On most PPAs, your payment will change each month, due to the fact that you are paying for the energy produced by the solar, which will change a bit due to clouds, rain, and seasonal shorter or longer days. However, our PPAs offer a flat monthly payment by averaging the expected production over 12 months. Ask your Planet Solar consultant if this program is offered in your area.
What does a Planet Solar Lease / PPA include?
One of the best parts of financing solar through a Lease / PPA is that you don’t own the system – the financing company does. So they have to make sure it is in perfect working condition for the full length of the agreement – 20 or 25 years. So, if an inverter fails, a solar panel cracks, or whatever, they fix it right away, free of charge. Solar installations have no working parts and rarely fail, but some people just like the simplicity of someone else being responsible for the solar.
All Lease / PPA products include the following:
- All supplies and labor required to design, install and maintain your solar power system
- Fixed payment option on leased equipment – and can be on a PPA as well.
- Insurance coverage to protect against damage or theft
- Repair service
- System monitoring to make sure your solar power system is performing as expected
- Money-back power production guarantee: If your system doesn’t produce the minimum kilowatt hours predicted, you’re paid the difference. If your solar power system produces more kilowatt hours than promised, the power is yours to keep for no additional cost.
- One-time transport of your solar power system to a new address (when you sell your home and install at your new address.)
What if the system doesn’t produce as much electricity as expected? Most lease / PPA programs have a Production Guarantee that promises the panels will produce all the energy we said it would, or they will pay you the difference.
It’s as if you bought a new car that promised 30 miles per gallon. But after owning it for a year, you found you only were getting 25mpg, so the car manufacturer paid for your gas bill on that 5mpg difference, every year, for as long as you owned that car. That’s exactly how the guarantee works. So, you can’t loose.
How are solar lease / PPA payments determined?
First we determine your electrical usage in kWH (not amount of money paid) by getting a copy of your electric bill. We’d like to see the past year’s usage month by month. Some utility bills already have that listed, but if not, you can create an account with your utility company and in about 5 minutes have all the information we need.
Second, we use our sophisticated design software to design a system that will achieve your goals. Then, one of our polite and friendly solar professionals will schedule an appointment to come to your home, at your convenience, show you the various options, answer all your questions, and determine how best to help you achieve your solar goals
Before deciding to use a lease / PPA
To assure that your expectations will be met and you get the most from your solar lease or PPA, make sure your situation meets the following conditions.
If you answered yes to these questions, you are an excellent candidate for one of our solar programs. How much can you save with a solar Lease / PPA? Every situation is different. Find out how much you can save by switching to solar here. We’re good at the details and coming up with the best solution for you.
- Is your electric bill is $130 per month or higher?
- Does your home get good sun exposure with minimal to no shading?
- Do you have reasonably good credit (FICO 650 or better)?
- Do you own your own home, and is the electricity bill in your name?
PACE – Property Assessed Clean Energy Financing
This is the easiest way to go solar for free – and it’s a very new concept. Essentially, YOU don’t buy the solar, your HOUSE buys the solar. As long as you have a bit of equity in your home, a financing company will loan your home the money to install a solar system. You pay nothing out of pocket, and in fact, you make no monthly payments for the solar either. Instead, the loan payments are added to your annual property tax bill. But the increase in your property tax bill will always be less than what you were paying for electricity from the utility company, so you save big money.
The best part about this program is that there is no credit check, so that if your credit has a few blemishes on it, you can still go solar as long as there is equity in the home. And better still – if you sell your home, the payments stay with the home. In fact, many people have installed solar on their home, and sold their home for tens of thousands dollars more, for nothing out of their pocket! It’s a smart strategy!
Sounds too good to be true? It actually works just as described. But the catch is that there are pretty sizable loan origination fees, and the interest rate on the loan is more than some people wish to pay. But honestly, if it saves you money every month (and it will, guaranteed), then it is still a huge benefit to you.
The Upside of the Solar Lease / PPA / PACE
Benefits of the Solar Lease / PPA / PACE are:
Your lifestyle may not change much, but your cost of living will. Unless you plan on cooking with fire and reading by candlelight, you will certainly continue to pay monthly bills for your electricity. With a Solar Lease / PPA, you can save 15-20% or more on your payments, and even fix your monthly payments over the next 20 or 25 years, while saving tens of thousands of dollars.
- No up front costs*
- Keep your cash for other goals
- Save 15% – 30% on electricity costs
- No maintenance responsibilities or costs (except cleaning the panels 2-3 times a year)
- The Same Energy, the Same Reliability – just costs you less.
The downside of solar leasing
Cash is still king. Solar is one of the best investments you can make, with Returns on Investment usually over 15%. The solar lease / PPA companies know that, which is why they are willing to buy the system and put it on your roof. With a solar lease / PPA, you do not own the solar on your roof, so you don’t receive any rebates or tax credits that you would with a purchase. And of course, there are the monthly payments that would not exist if you owned the system.
But, compared to the utility rates you are paying now, a solar Lease / PPA is a fantastic new option. As we like to say at Planet Solar, “We offer all of our customers ‘Good, Better, and Best’”. The only bad option, is to do nothing and stay with the utility company.