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Loans

 

Solar Leasing (Pre-Paid Agreement) Versus Financing

 

 

Finance

Lease

Terms

1-20 years

10-20 years

Payments

Fixed Amount

Fixed, but can escalate over time

How You Save

Utility bill is more than the monthly loan payment

Lease payment is lower than the monthly utility bill; may not be the case with escalation lease  payments

Ability to Pay Down Lease/Loan

METRO solar loans come with the option to make a large one-time payment and have the loan re-amortized for lower payments

Due to the utility inflation rate assumed in the lease model and the payment escalator, lowering the lease payment may not be possible

Home Value

If the system is paid off, it may add value to the home and be considered as an addition or upgrade

When the lease is satisfied, may add value to the home and can be considered an addition or upgrade. However, the system is not owned by the homeowner and could be a hindrance when selling or buying a home

Equipment Maintenance

Homeowner assumes the cost for maintenance and repairs

Lease company assumes the cost for maintenance and repairs during the lease period
Factors to Consider Make sure the size of the system is tailored to your usage. Smaller systems equates to a smaller loan payment Make sure the utility inflation rate and the payment escalator closely aligns with your ability to pay the lease amount over time.
Tax Incentives and Credits Homeowners can receive any available State incentives and Federal tax credits Lease company receives any available State incentives and Federal tax credits
 
Questions? Call 619.297.4835 or go to our contact us page.

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