How To Pay For Solar Power, Not Solar Panels

We all like the idea of reducing our carbon footprint — but not if it costs so much we can't afford to buy shoes. Switching to solar power will actually save you money on energy bills right from the start, but that initial equipment purchase can be quite expensive.

Going green doesn't have to come with a hefty startup price, though. Thanks to something called a power purchase agreement (PPA), you can pay for solar power without having to buy solar panels. That means you can start seeing savings on your energy bills for as little as $0.

How Does It Work?

A PPA is a long-term contract between you and your solar energy provider: You agree to purchase the power produced by the system at a low fixed rate, and your solar provider has full ownership of the solar energy system itself.

Horizon Solar Power, southern California’s local leader in solar power energy, offers this form of long-term lease. It installs, maintains and repairs the equipment for the duration of the PPA. You simply pay for the solar power produced based on a low fixed rate that's typically less than what your local utility company charges.

Getting Set Up With Solar

Start with a free consultation to find out how much you could save on your monthly bills by switching to solar. With Horizon Solar Power, you'll meet with one of its expert solar consultants to discuss your personal energy use and assess your solar needs. Immediately after your consultation, you'll receive a free, no-obligation proposal that explains what solar panel system design would best fit your needs and outlines the amount you'll pay per kilowatt each month. You'll also get a full rundown of local rebates and incentives available to you for switching to sustainable energy.

Start Seeing Savings

Once you've made the switch to solar, you'll see an immediate decrease in your electric bills. The higher energy costs are in your area, the more savings you'll see. According to NerdWallet's estimates, the average solar residential solar panel system lowers the household's electric bill by $600 each year.

Going solar also protects you from inflation and the unexpected price hikes that can effect the cost of natural gas and petroleum. Under the terms of most PPAs, you agree to pay a set price for solar power for somewhere between 10 and 25 years. That means that even if fossil fuel prices go through the roof, you'll still be paying the original low rate you agreed on for solar power.

But What If...

What if you sell your home before the end of your PPA? No problem. You can either transfer the agreement to the new homeowners or include its cost in your selling price and pay it off that way.

Should you decide at any point that you want to buy your solar equipment outright rather than keep leasing it, that's doable too. Common terms of a solar PPA include the option of buying the system at any point during the agreement term at the price defined in the contract or at the system's fair market value.

Ready to get started? See How much you can save with Horizon Solar Power

Read more about solar power:

• 7 Things You Didn't Know About Solar Power
• How Much Can You Really Save By Going Solar
• Solar Power Made Simple: A Homeowner's Guide

First Photo Credit: 10 10 via flickr