There are many ways to finance your solar energy system. One of our solar consultants would be happy to discuss your goals and help figure out the solution that suits you best and brings you the best value.

If you’re reading up on financing options for solar then you probably already know a solar energy system is a smart investment, and you’re right! Now, let’s talk about the different ways you can pay for this investment. The cost of solar varies depending on equipment, location of the solar array and a few other factors, but one of the biggest factors is the size of your electric bill. A typical solar system will cost between $15,000 and $25,000. At A.M. Sun Solar we help our clients everyday come up with financing solutions that make sense and allow them to start saving money right away.
Benefits Cash Loan PPA or Lease Pre-Paid PPA
Money out of pocket
Down payment
Tax credit (s)
Monthly payments
for financing
12-year workmanship
Payment term Paid in full 8 - 30 years 20 years Paid in Full

Buying or Power Purchase Agreement (PPA)

There are a few ways to enjoy a home solar energy system. You can buy a system, lease a system, or purchase the power from a system. Each option has its benefits depending on your particular situation.

Buying Your Solar System with Cash

If you can use the Federal Tax Credit, buying your solar system is the best way to get the most out of your investment, whether you pay cash or get a loan. There are many advantages to owning your solar energy system.

The return on investment is high, the payback period is short, you own the equipment and the power it produces, it increases the value of your property without increasing your property taxes, and you receive a federal tax credit. If you have the money to invest in your solar energy system and can use the federal tax credit, we recommend paying cash for your system - or getting a loan through one of our sources or one or your own.


  • High return on investment
  • Quick payback period
  • Increases the value of your property without increasing your property taxes
  • Receive a federal tax credit (*check with your financial advisor)
  • Costs far less than you would pay for electricity over the lifetime of the system

Paying for Your Solar System with a Loan

Financing your solar energy system with a loan can provide you with valuable benefits. Securing a loan depends on your credit score and / or your debt to income ratio (DTI). There may still be options available even if you have a low credit score and high DTI, so let us know and we can help find an option for you.

Many times, you can secure a loan that is lower than your monthly utility expenses. No need for you to worry about all the options, our experts will help you choose the right loan for you. We have a variety of loans from many different sources.


  • No money out of pocket
  • Typically you’ll have instant savings – paying less than your utility bill
  • No prepayment penalty. Pay off your loan any time!
  • High rate of return once system is paid in full
  • Receive a 30% federal tax credit. Check with your financial adviser.
  • Re-amortize your loan using the Federal tax credit to further reduce your monthly payment

What is a Solar Energy PPA/Lease?

PPA stands for Power Purchase Agreement. When you choose a PPA/lease you will be purchasing power produced by solar equipment that is owned by a third party and has been installed on your roof, or elsewhere on your property. You will still be dependent on PG&E, but you will be buying your power at a lesser rate by going solar. Since you won’t own the equipment, it will be warrantied, maintained, monitored and insured by a third party. In addition, the production of the system will be guaranteed for the term of the agreement, which is typically 20 years. This means you don’t need to worry about anything, including the ever increasing cost of electricity!


  • $0 out of pocket expense
  • Pay less for your power
  • No longer worry about the rising cost of electricity
  • System is warrantied, maintained, monitored and insured at no expense to you

Paying For Your Solar System With a PACE Loan

PACE stands for Property Assessed Clean Energy. This means you can get a solar loan regardless of your credit score and regardless of your debt to income ratio. You’ll need equity in your home and you’ll need to be current on your property taxes, but otherwise the stipulations are fairly lenient. The beauty of this loan is when it comes time to sell your home, the solar and the loan stay with the house.


  • $0 out of pocket expense
  • Easiest solar loan to qualify for
  • Payment becomes part of your property tax bill
  • No prepayment penalties
  • Re-amortize your loan as often as you like with as little as $2,500 each time
  • Up to 30 year terms
  • Most PACE loans are cash-flow positive
  • Receive the 30% federal tax credit and either keep it, or re-amortize your loan in order to reduce your monthly payments
  • Deduct the interest on the loan for an even greater savings

How to Purchase a Solar Energy System

Now that you know more about your options for purchasing a solar energy system, the next step is to see if your home qualifies for solar and if you can save money with solar for your home.

A.M. Sun Solar offers many financing options for those interested in going solar. Our staff of experts will take the time to understand your goals and motivation for going solar and help guide you down the right path to bring you the best value from your solar energy system.

When you’re ready to talk give us a call at 805-772-6786 or fill out the form, and we will call today so you can get started. No pressure or obligation; that’s not our style. Just a friendly chat and all the time you need to get all of your questions answered.