Does solar feel out of reach? It doesn’t have to be. Uprise is on a mission to make solar affordable for every homeowner in the Washington, DC Metro area — and we mean every homeowner. How are we making it happen? Here are the solar financing options we provide.
Uprise offers three solar financing options:
- Power Purchase Agreement
- Pay nothing for installation by agreeing to host solar on your roof
- A great option if you are exploring cost-effective options to save money on your power bill
- Solar Loan
- Pay for your solar over time through loans
- A great option if you want to own your system but don’t want to invest the total cost upfront
- Cash
- Pay the total cost for solar
- Typically the best way to own the system with all incentives available
Let’s dig more into the pros and cons of each one of our solar financing options.
Option 1: Power Purchase Agreement
A Power Purchase Agreement, or PPA, means you agree to host solar on your roof and don’t pay for construction. Instead, Uprise will own your system. You’ll receive all the savings generated by the solar array and simply pay for the remaining (if any) electricity you need from your utility company.
You might be wondering what the catch is. Just as with any of the options, there are trade-offs to a PPA. For one, there are financial incentives for the system owner, namely the 30% solar tax credit and the Solar Renewable Energy Credits (SRECs). However, if those incentives aren’t a priority and you’re comfortable with Uprise owning and maintaining your system, a PPA unlocks the significant savings of vastly lower utility bills.
Here’s the key point: this option lets you benefit from solar even if system ownership isn’t your goal. The positives are significant cost savings, clean energy usage, and the convenience of having Uprise handle everything!
How else will solar benefit my family?
Don’t forget the environmental benefits. Instead of running off fossil fuels which emit greenhouse gases into the atmosphere, contributing to climate change, your home will be running off renewable energy from the sun. Your home can be part of the fight against climate change. Solar will help you contribute to a cleaner neighborhood and a better planet for future generations.
How much you’ll save on your monthly power bill will depend on how many panels are on your roof and how much electricity you consume. As one example, Uprise customers report paying around $20 for utility bills that cost well over $100 before solar. Over the 25- to 30-year lifespan of the panels, we estimate you’ll save tens of thousands of dollars. And net metering offers you an additional bonus.
So who is paying for the solar installation?
One way Uprise makes a PPA happen is through DC’s Solar for All program, run through the Department of Energy and Environment and the DC Sustainable Energy Utility. Uprise is authorized as a Solar for All installer. Homeowners can either income qualify, or be receiving benefits from a program like the Supplemental Nutrition Assistance Program (SNAP) or the Low Income Home Energy Assistance Program (LIHEAP) to get solar through Solar for All. If you’re wondering if you qualify, we’d be happy to discuss the details with you.
But we also make PPAs available for homeowners who don’t fall under the Solar for All requirements. Bottom line: if you don’t qualify for Solar for All, you qualify for Uprise’s PPA. The financial incentives Uprise receives as a system owner make it possible for us to offer a PPA to anyone who doesn’t want to fork over the initial cost for solar.
Long story short, a PPA is a great economical option for a homeowner who wants to go green and gain electric bill savings. Read more about Uprise’s PPA here.
Option 2: Solar Loan
If you do want to own your rooftop solar array, but can’t afford the price tag all at once, you may benefit from a solar loan. Uprise works with direct-to-consumer financial providers to offer multiple loan options, with fixed and variable rates going out as far as 25 years. The loans have no prepayment penalties or closing costs.
Here’s how it works: we’ll introduce you to a bank to get approved with a credit check. Uprise’s goal is to offer our customers an exceptional solar experience. The banks we partner with are part of that experience. We have access to work with many banks, but we choose to work with only a select few we trust. Plus, there’s an extra safeguard for you in the loans offered: the bank won’t pay us in full until the project is completed and you’ve signed off on your solar installation.
What about interest rates?
With the financial incentives available in DC, we estimate homeowners will pay off their loans in three to four years.
Some solar providers offer incredibly low interest rates — but they’re not the deal they seem to be. If you’re being offered an interest rate lower than the Federal Reserve’s, take note. These solar providers are able to offer these rates because they’re charging their customers more up front. Think of it the same way you would a mortgage loan. You’d have to make a larger down payment to obtain a lower interest rate. It’s the same with solar installations. You’re paying a premium to obtain that low interest rate offered by some solar companies.
At Uprise, we don’t upcharge. We believe it’s important to be transparent and honest about what you’re getting into with a solar loan. The banks we work with will offer interest rates closer to the Fed’s, but with the DC solar incentives, you’ll be able to pay off your loan sooner. You won’t have to go the full length of the loan and pay interest for those years. Once you’ve paid off your loan, you’ll own your system outright.
Option 3: Cash
Cash is the most obvious and easiest way to pay for solar, if you can afford to do so. With the federal solar tax credit, DC SREC market, and electric bill savings, you’ll reach your solar payback point, or when the solar panels pay for themselves, in around three and a half to five years. (That number is higher in Maryland or Virginia, where SREC prices aren’t as high.)
Reach Out For More Info!
You’ve got options to go solar, no matter your budget! We love seeing more solar panels popping up around the DMV, and we’re working to make clean energy a possibility for every homeowner. If you’re not sure which one of the solar financing options might work best for you, we’d be more than happy to walk you through the details. Bring us your questions! Call us at (202) 280-2285 or email us at info@uprisesolar.com.