The economics for rooftop solar are terrific — typical paybacks in the 4-10 year range. From a Return on Investment (ROI) standpoint, there are almost no other investments that come close. Think about it: 1.5% before tax in the bank (steady but low), 6% before tax in the stock market (very variable) or 14% after tax with rooftop solar (as long as the sun shines and assuming a 7 year payback period).
But… at the average price of $3.50/watt, a 5,000 watt system will cost $12,250 after the 30% tax credit. Many people with high electric bills don’t have that much cash available to purchase a system. Until about five years ago the only option for financing a rooftop solar system was a long-term lease or Power Purchase Agreement (PPA). Luckily, over the past five years a number of finance companies have started to offer loans for financing your solar installations.
My guest on this week’s show is Sara Ross, Founder and CEO of Sungage Financial. She tells a compelling story as to why loans are the best way to finance your rooftop solar system. Please Listen Up to this week’s Energy Show on Renewable Energy World to learn more about options to finance your rooftop solar system.