Solar Loan
A financing product specifically designed for solar installations, typically offering 10-25 year terms. May be secured (using home equity) or unsecured, with rates from 3-9%.
Why It Matters
Solar loans let you own the system (and the tax credit) with $0 down. Unlike leases, you build equity and benefit from the full increase in home value.
Real-World Example
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PPA (Power Purchase Agreement)
A financing arrangement where a third party owns the solar system and you pay for the electricity it generates.
Solar Lease
A financing option where you pay a fixed monthly fee to rent a solar system, while a third party owns and maintains it.
PACE (Property Assessed Clean Energy)
A financing mechanism where solar and energy efficiency improvements are funded through a voluntary assessment on the property tax bill, repaid over 10-25 years.