Solar Payment Methods: Leasing/PPA, Financing, or Cash –
So, Which Solar Payment Option Is Right for You? If you want savings without the commitment, Leasing/PPA is your low-risk entry point. If you''re ready to invest but need
The most common payment options in the Solar Industry are Cash Purchase, Power Purchase Agreement (PPA), Lease, and Loan. Cash Purchase refers to the direct acquisition of the system and is paid upfront without any financing.
As in any other type of investment, Solar PV customers also have different options to pay for the system, depending on what's financially more advantageous for the particular project. The most common payment options in the Solar Industry are Cash Purchase, Power Purchase Agreement (PPA), Lease, and Loan.
Cash Purchase refers to the direct acquisition of the system and is paid upfront without any financing. The business or homeowner will be able to utilize the solar production and receive all incentives, but will also be responsible for the maintenance of the system.
Third-party financing is a well-established financing solution in the United States, having emerged in the solar industry as one of the most popular methods of solar financing. Third-party solar financing predominantly occurs in two forms: solar leases and power purchase agreements (PPAs).
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