Home & Garden
How To Switch To Solar Energy With $0 Saved Up
Still think installing a solar power system for your home or business has to cost thousands of dollars up front? Think again. [SPONSORED]
Sure, sunlight is free, but turning it into electricity? Not so much.
While the solar energy market has reportedly become 130 times cheaper as of 2015, converting your home into a solar powerhouse still costs a pretty penny. According to EnergySage, most homeowners in 2017 are paying between $2.87 and $3.85 per watt to install solar. That means the average price for a 6KW home solar system in the state of California costs between $13,700 and $17,500, and between $22,800 and $29,200 for a 10KW system.
But does going green with your energy have to cost that much? Not if you know your options. More and more private residences and small businesses alike have found a way to save thousands on their switch to solar power thanks to a new financing option that lets you skip upfront costs.
What is a PPA?
Why buy when you can rent? That's the general idea behind a solar leasing agreement, but a power purchase agreement, or PPA, takes things a step further: Why pay for solar panels when you can only pay for solar power?
Rather than buying a brand new solar panel system or leasing one and making regular payments on the pricey equipment, a PPA is set up so you only pay for the energy produced by your solar energy system. In the same way you get a utility bill each month for the electricity you used, your PPA bill will itemize your energy production by kilowatt. You can see what you can save with a free quote.
Signing a solar PPA sees tax credits and other financial incentives going toward the owner of the system, similar to renting a solar panel system. Common terms of a solar PPA include buying the system — an option available at any point during the agreement term at the price defined in the contract or at the system’s fair market value — and the ability to transfer the system under the same agreement when selling one’s home.
How It Works
Start by getting a quote to see how much you could save on monthly bills by going solar. From there, a local expert will help you figure out if solar is right for you, and if it is, they will help you determine which system works best for your home. They'll then put together a full PPA proposal, which outlines the amount you'll pay per kilowatt each month, and the developer will install your new solar energy system for you.
When it comes to cost savings, here are a few of the biggest perks that come with a PPA:
No upfront costs — Most companies don't charge for installation, and better yet, they send a local team to handle the entire installation from start to finish. That means you don't have to be a pro to get started.
Lower Utility Bills — Once you're powered up, your monthly payment per-kWh price of electricity will be drastically lower than the cost of old-school electricity.
No Unexpected Rate Hikes — Since the cost of the solar electricity will be sold to you at a predetermined rate, you won’t have to worry about any potential increases for the duration of your agreement. Most times PPAs are between 10-25 years, which means you'll be locked in at a set price.
Get A Personalized Solar Quote
Choosing A Solar Power Provider
Horizon Solar Power, southern California’s local leader in solar power energy, offers no cost for panels and free installation, as well as free quotes for prospective customers. It also offers customers a singular set of benefits:
- PPA with a 20-year contract and full maintenance during this period.
- Payment options offer customers the ability to buy their solar system outright and finance with multiple loan products.
- Monitoring is optional, but available, via Horizon Solar Power's partnership with Sunrun, a San Francisco-based provider of residential solar electricity and solar panels.
- Warranty options, which vary based on product type, which cover conditional damage and repair needs.
Ready to get started? See How Much You Can Save With Horizon Solar Power
Read More About Solar Power:
- Everything You Thought You Knew About Solar Energy is Wrong.
- 5 Ways to Save Major Moola on Utility Bills
Photo credit: Tafe Sa Tonsley via Flickr
