This is exactly what it sounds like – you purchase your panels with a full payment when you have your panels installed. While this used to be the only way to go solar, it has become the least popular way to go solar – not that there is anything wrong with a cash purchase. On the contrary, it actually allows homeowners to capture more savings than any other financing method – of course, the downside is that you have to pay cash for those panels that you don’t have available in the meantime for other expenses.
Solar cash purchases, if you can afford them, are a phenomenal way to go solar. You truly own your power, and are insulated from the power market while your panels are producing energy. Homeowners who choose to go solar with a cash purchase are able to take advantage of all federal and regional tax credits and incentives, and are able to truly say they own their power.
Solar cash purchases are a great option for many, but not all homeowners. Obviously, a cash purchase requires that you have enough in savings to pay for the panels up front, and that you are willing to use that money to purchase panels instead of utilize the money for some other purpose. For this reason, many homeowners who are able to purchase panels with cash still decide to take out a solar loan or solar lease or PPA.
Solar cash purchases are free of any interest rates that loan providers need to charge to be able to make a reasonable amount on their product, and are free of the installation, maintenance and operating costs associated with solar leases.
Cash purchases, while once the only way to go solar, have dropped in popularity over the years as more financial products have become available to service the solar market. Most homeowners who have the ability to purchase a system with cash also consider the other options, and a significant number of homeowners choose solar loans as the happiest medium – this is because, like a cash purchase, loans allow a homeowner to own their solar panels instead of lease them, they allow homeowners to take advantage of all federal tax incentives, and all regional tax incentives and utility rebates, while not tying up the homeowners’ cash until the payback period is finalized.
Cash solar purchases are easier to deal with than any other type of solar financing when you sell your home. You simply include the value of the panels on the home in the selling price – there are no contracts to transfer or buy out.
Almost all solar providers offer cash purchase options. Cash purchases for solar are offered everywhere in the country, and all the providers we work with offer this option. To check for providers we recommend working with on cash purchases in your area, simply enter your zip code into the box at the top of the page, and we display providers who are able to provide competitive quotes so you can begin to get an idea of how much solar would save you.