You’re a solar installer, so you know that convincing a potential customer of the benefits of going solar isn’t too complicated. Still, explaining how they overcome the upfront cost can be challenging. 
 
The cost of solar has dropped in recent years. But, for the average homeowner, spending five figures upfront—especially on an investment that could take years to break even—can sometimes be a challenge. 
 
It’s no secret that more homeowners are financing solar rather than paying cash upfront. 
 
Offering loans, leases, and other financing options makes solar panel installation more attainable to the average homeowner—turning it from a potential big hit to their household budget into a wise investment. 
 
But integrating a full range of financing options into your business isn’t easy. And matching customers with the best solar financing option for them—let alone explaining it to them—can also be challenging. But it doesn’t have to be. 
 
To make solar financing easy to understand and sell, let’s break it down into two categories: 

Customer-owned systems

• RICs

Third-party-owned financing

• PPAs
• Solar Lease
  
  

Customer-Owned

Customer-owned solar financing option lets the customer pay off their installation over time. The homeowner makes monthly payments over time, typically 10-25 years, with a low or even $0 upfront payment. 
 
A common financing option for owning an asset (be it a car or solar panels) is a Retail Installment Contract (RIC), where you essentially upgrade to solar by agreeing to make payments over time. 
 
Customer-owned solar financing can provide several financial advantages: a solar tax credit and increased property value. On the flip side, RICs have high credit score requirements, which can be a barrier for some customers. 

Third-Party-Owned

Solar leases and PPAs are perfect if you want to go solar, lock in a predictable energy cost, aren't concerned with tax credits, and enjoy your solar system being managed and maintained professionally. 

With a lease, you’re financing a solar system and paying monthly installments based on the total cost of the system, not system performance. Typically, a lease is an option in states where PPAs are unavailable. 

A Power Purchase Agreement (PPA) is a homeowner and solar company financing agreement. The company installs and maintains a solar system on the homeowner’s property, and the homeowner agrees to purchase the solar energy produced by the solar system at a $/kWh rate (with an agreed-upon annual rate of escalation). A PPA is a good option for homeowners who want predictable energy costs, no upfront or maintenance costs, and will not benefit from tax credits. 

EverBright offers two PPA options, both with 25-year contract terms and maintenance included: 

EverFixed: Homeowner monthly payments are calculated based on a yearly average solar productivity (estimated annual kWh/system size - kW) at the agreed upon $/kWh rate (with an agreed upon annual rate of escalation). This gives the homeowner greater certainty about their energy costs, which helps with budgeting and financial planning. In addition, it’s easier for the homeowner to understand, as it avoids the need to explain the variance in solar production throughout the year. EverBright guarantees the system’s production. Our EverFixed Plus offering has all the features of our EverFixed product, plus a battery storage add-on.  

EverFlex: Homeowner monthly payments are based on the actual power generation that the solar system produces monthly. 

Expand your solar business with solar financing.

Understanding these solar financing options is one thing, but explaining them to potential customers is another.

The average homeowner isn’t well-versed in solar, let alone financing. So, educating yourself about the various products on the market is critical.

Conveying expertise and demonstrating that you’re well-versed in all things solar and solar financing will help you build trust and confidence with your potential customers and their referral network.