Name: Diamond Certified Experts: Solar Financing Options
Uploaded: 2016-05-13T21:17:16Z
Channel: Diamond Certified Resource

SAN JOSE — Host, Sarah Rutan: When planning to install a solar power system, one of the first things you’ll need to decide is how you’re going to finance it. Today we’re in San Jose with Diamond Certified Expert Contributor Dean from Highlight Solar to learn about a few options.
Diamond Certified Expert Contributor, Dean A.: There are several options for solar financing. I will cover four of them. Each one of them has benefits to the customer. Each customer needs to decide which one is best for him or her.
I will start with PPA, power purchase agreement. With PPA, the customer does not get the 30-percent tax credit. Also, you are tied into 20 or 25 years monthly payments into the program. It&#8217;s great, but I don’t like the fact that the customer doesn&#8217;t get the 30-percent tax credit.
The second one is PACE. PACE is an excellent program. Customer gets 30-percent federal tax credit. Also, the payment will be lumped with the property tax. So, when you&#8217;re making property taxes, you will be paying for your solar as well. And then you get credit for solar to add to your property tax as well. So, it&#8217;s nice because you get 30-percent federal tax credit and some property tax break added to the solar.
The third option is home equity line of credit, HELOC, where a customer does get the 30-percent federal tax credit. Also, the customer can shop for their own rates and get a really low rate for taking a loan on their home and then paying for their solar electric system. The return on investment for the solar electric system is much higher than any interest rate paid on the home, so you&#8217;re definitely coming positive.
The fourth option is buying the system, cash upfront. This would be the best option, in my perspective, because it provides the highest return on investment and the shortest payback time. On average, the payback time is about six years. This is fantastic. After six years, the entire system is a cash cow for 25 years under warranties, and then the system can give production up to 50 years.
In my perspective, they&#8217;re all great. I prefer either PACE, basically HELOC, or cash payout. If needed, PPA is not bad. It offers solutions for other customers as well.
Host, Sarah Rutan: To learn more from local top rated companies, visit our Diamond Certified Expert Reports at experts.diamondcertified.org.

Dean Alayleh, President of Highlight Solar, a Diamond Certified company, goes over when planning to install a solar power system, one of the first things you?ll need to decide is how you?re going to finance it.

Solar Financing Options from Dean Alayleh of Highlight Solar.

Video: Solar Financing Options

https://www.youtube.com/watch?v=NYbOYR7M3Uc

Host, Sarah Rutan: When planning to install a solar power system, one of the first things you’ll need to decide is how you’re going to finance it. Today we’re in San Jose with Diamond Certified Expert Contributor Dean from Highlight Solar to learn about a few options.

Diamond Certified Expert Contributor, Dean A.: There are several options for solar financing. I will cover four of them. Each one of them has benefits to the customer. Each customer needs to decide which one is best for him or her.

I will start with PPA, power purchase agreement. With PPA, the customer does not get the 30-percent tax credit. Also, you are tied into 20 or 25 years monthly payments into the program. It’s great, but I don’t like the fact that the customer doesn’t get the 30-percent tax credit.

The second one is PACE. PACE is an excellent program. Customer gets 30-percent federal tax credit. Also, the payment will be lumped with the property tax. So, when you’re making property taxes, you will be paying fo

Highlight Solar

Highlight Solar

Diamond Certified Video Reports on Highlight Solar

Related for

Expert Articles

Expert Videos