Investing in solar is a smart financial move, but choosing the right financing option is critical to maximizing long-term savings.
At Renew Solar Services, we strongly recommend solar loans over leases or PPAs. Loans allow you to own your system, receive tax benefits, and avoid hidden fees. Leases and PPAs, on the other hand, come with long-term financial risks that many homeowners don’t realize until it’s too late.
Here’s a breakdown of your solar financing options and what to watch out for.
1. Solar Loans – The Best Option for Long-Term Savings
🔹 What is a solar loan?
A solar loan lets you own your solar system while making fixed monthly payments, similar to a home loan. You receive all tax incentives and gain the full benefits of solar ownership.
🔹 Why We Recommend Solar Loans:
✔️ No upfront cost – Many banks offer $0 down solar loans.
✔️ Loan terms of 10, 15, and 25 years – Flexible payment options.
✔️ Own your system & increase home value – Unlike leases, your solar system adds equity to your home.
✔️ Qualify for tax credits & incentives – Get the 30% Federal Solar Tax Credit plus state rebates.
✔️ Easily transferable when selling your home – Most solar loans can be transferred to the new homeowner at no cost.
🔹 Who offers solar loans?
Many reliable banks and credit unions offer solar financing with competitive interest rates.
💡 Renew Solar Services works with top lenders to find the best loan for you.
2. Solar Leases – High Costs & Low Savings
🔹 What is a solar lease?
With a solar lease, you don’t own the system—you rent it from a solar company. You pay a fixed monthly fee and still see some energy savings, but the company keeps all tax credits and incentives.
🔹 Why We Don’t Recommend Solar Leases:
❌ Low savings – Most leased systems only save homeowners around 20% on their electric bill.
❌ No ownership, no tax credits – The solar company gets all financial benefits.
❌ Locked into a long-term contract – Typically 20–25 years with escalating payments.
❌ Maintenance delays & poor service – We’ve seen many customers stuck waiting months for repairs while still paying both their lease fee and electric bill.
❌ UCC Lien on your home – Leased systems come with a filing on your property that prevents you from selling your home without an expensive buyout.
💡 Leases sound good upfront, but in the long run, they often cost more than owning your system with a loan.
3. Power Purchase Agreements (PPAs) – A Costly Long-Term Commitment
🔹 What is a PPA?
With a Power Purchase Agreement (PPA), a third-party company installs and owns the system, and you pay for the electricity it generates at a fixed rate.
🔹 Why We Advise Against PPAs:
❌ Your solar power costs go up every year – PPAs include an annual price escalation, meaning the cost of energy keeps increasing while utility rates may not rise at the same pace.
❌ No control over energy costs – The company sets the rates, and you’re locked in for 20–25 years.
❌ Zero ownership, no tax credits – Just like a lease, you don’t get any financial benefits.
❌ Slow response to repairs – We’ve seen countless PPA customers stuck with non-working systems, while still paying their PPA fees plus their electric bill.
❌ Restrictive contracts with expensive buyouts – PPAs also place a UCC lien on your home, requiring you to pay off the contract in full before selling.
💡 Many homeowners regret signing a PPA due to escalating costs and contract restrictions.
4. Why Renew Solar Services Recommends Solar Loans
When comparing financing options, the clear winner is a solar loan. Unlike leases or PPAs, loans give you ownership, tax benefits, and control over your energy costs.
💰 Best for maximizing savings? → Solar Loan (Own & Claim Tax Credits)
💰 Best for no upfront costs with long-term benefits? → Solar Loan
💰 Worst for selling your home later? → Lease or PPA (UCC Lien & Buyout Fees)
📞 Need help finding the best solar financing option? Contact Renew Solar Services today!
5. Solar Incentives & Rebates in New York
New York has some of the best solar incentives in the U.S.:
✔️ New York State Solar Tax Credit – Get 25% back (up to $5,000) on state taxes.
✔️ PSEG Long Island Solar Rebates – Cash incentives for qualified homeowners.
✔️ NY-Sun Program – A state program that lowers installation costs.
✔️ Property & Sales Tax Exemptions – Save thousands on taxes when going solar.
💡 Renew Solar Services helps homeowners take advantage of every available incentive.
Why Choose Renew Solar Services?
✔️ We recommend solar loans for the best financial benefits.
✔️ We help you secure the best loan rates with trusted banks.
✔️ We guide you through all rebates, incentives, and tax credits.
✔️ We prioritize ownership, savings, and system reliability.
💡 Take control of your energy future! Get solar with the right financing option today.