What is zero down solar?

Zero down solar refers to financing your solar installation without any upfront payment. With an average-sized 5kW solar installation costing around $15k\, the idea of avoiding a large initial payment can be appealing. But,how does one go solar with no upfront costs, and how does the process work?

Should you buy a solar system with no down payment?

Although the idea of having no down payment is appealing – especially for big-ticket purchases like cars or solar panels – it’s important to understand the overall financial commitment you’re making before spending tens of thousands of dollars on a solar system that you’ll rely on for more than two decades.

Which companies offer zero down solar?

Zero down solar is an option that depends on the type of financing you choose. If you're considering a loan, most solar installers – big or small, national or local – can handle it. You can simply go to a bank or credit union and take out the loan yourself, then have them install the system.

Do solar loans come with a zero-down option?

Most solar loans come with a zero-down option. The amount you pay monthly depends on how much your system costs to install, your interest rate, your loan term, and the type of loan you choose, but your monthly loan payments will still cost less than your previous electricity bill, providing you with immediate savings.

How do I go solar without upfront costs?

There are three main ways to go solar without any upfront costs – solar loans, and solar leases or power purchase agreements, also known as PPAs. Solar energy systems are an expensive investment, which is why about 85% of all solar system installations are financed. The zero-down option with the most financial upside is a solar loan.

What is a zero-down solar PPA?

With a zero-down solar PPA, you owe nothing to your provider upfront. Like solar leases, your monthly bill will likely be between 10% and 30% lower than your previous electric bill, and you’ll likely have an annual rate increase of one to three percent per year (depending on your agreement), which also means you save less than with a solar loan.