Easy, Flexible Financing
ACES Lyfe offers a wide variety of financing options with terms as long as 20 years and interest rates as low as 0%.
In many cases, these flexible terms can mean payments lower than the savings our customers see on their power bills, or an upgraded, safer home for less than the average Netflix subscription.
Let us show you how easy and affordable it can be to make your home more comfortable, more efficient, safer, and able to produce its own power.
With just a few details, we can prequalify you today. This is a no-strings-attached process that will in no way impact your credit score or appear on your credit report.
If you are looking for an interest-free solar power system and have sufficient funds to purchase it, cash payment is your best choice. Moreover, you have enough tax liability to benefit from a solar investment tax credit (ITC). The purchasing process is relatively uncomplicated compared to the other solar financing ways as there are no third-party solar financiers involved.
Paying upfront maximizes the savings and returns on investment you can get from going solar. Imagine the relief of saving money from utility bills for the next 20 years. It also exempts you from any fluctuations in the electricity rate, depending on the chosen PV system. You may also enjoy rebates and incentives. In addition, in the United States, you can recover your initial outlay for a rooftop solar in about four to eight years, depending on the type of your system, kind of solar panels, and other equipment included.
If you do not have an adequate capital shell out, then one of your options is to take out a loan from loan providers. Loan providers create flexible loan payment plans to help customers decide which fits their budget. These plans depend on the payment periods, income-to-debt ratio, credit scores, and interest rates which usually do not require any down payment. Depending on the created program, payment periods can take up to five to twenty years and start as low as zero percent.
Solar loans also allow buyers or owners to own a solar power system that does not require a complete cash payment at the time of purchase. Although it may take several years to settle the cost, it would be a great option rather than paying it outright if the borrower does not have enough cash in their pocket. And depending on the type of PV system, one can enjoy rebates or incentives and savings of around two to five times from the ownership.
There are two categories of solar loans. The first category is the secured loan. In this case, credit unions and national lending institutions offer this category of loan. A secured loan requires an asset as collateral for the borrowed money. Although it may take several weeks to avail this loan, it offers longer terms and comes with lower interest rates. The downside is if the borrower fails to pay the monthly obligation, the lender will repossess the collateral asset.
There are various types of secured loans. One is the Property Assessed Clean Energy Program (PACE). Under a PACE program, state and local governments provide full financing options to fund the outright cost of energy improvements and upgrades on business, commercial, and residential properties. In return, the property owner pays back the cost over time, and the property becomes the collateral. If the owner sells their home while under a PACE program, the new property owner can either take over the loan payment or require the original owner to settle it first before the latter can move in. Utah is one of the states that have PACE authorization.
Green Mortgages is another type of secured loan. It is also known as Energy Efficient Mortgages (EEM). EEM allows homebuyers and homeowners to finance or refinance energy-efficient home projects or solar upgrades that reduce energy costs. EEM requires a home energy assessment before the loan is approved; hence, it is time-consuming. Moreover, if there is a failure in monthly payments, the lender can repossess the home, which is the collateral.
Other types of secured loans are from utilities, state, and local governments which a homeowner can check available loan programs.
Home Equity Line of Credit (HELOC) provides homebuyers or homeowners with lower interest rates as long as they have a good credit score. Since the home’s equity secures this loan type, the property becomes the collateral. If the homeowner borrower defaults, the lender may repossess the collateral.
The second category is the unsecured loan. It comes with typically higher rates, but it is faster to process, and it does not require an upfront collateral asset.
Solar Lease and Power Purchase Agreement (PPA)
Both solar lease and PPA are financing options of third-party ownership (TPO). In this sense, the homeowner does not own the solar power system; instead, a third-party owner or company retains the ownership and maintenance. It purchases the solar power system, installs it, maintains, monitors, and sells the electricity to the homeowner. The third-party owner also shoulders any upfront payment, maintenance, and repair.
On the contrary, since the homeowner is technically not the “owner” of the PV system, they are not entitled to solar rebates, incentives, tax credits, and tax savings. Instead, it is the third-party owner who is eligible for these credits and incentives. But the homeowner can still enjoy the reduction from utility bill costs as they pay directly to the third-party owner in place of the utility company.
The solar lease allows the homeowner to rent the PV system from a TPO with minimal expense. Usually, there is no required down payment to renting the system. A solar lease agreement requires fixed monthly or upfront payments for the system while the property has a lien attached to it.
Residential solar leases typically range from 15 to 20 years, while commercial solar leases last seven to 20 years. After the lease contract, the homeowner can renew the lease for another 5 to 10 years, remove the PV system, or purchase it depending on the current market value. However, if you choose to move to another place or sell your house while on a solar lease, there are ways to transfer the lease over, but it will be time-consuming and difficult.
The PPA solar financing is a little different from a solar lease. PPA allows the homeowner to buy the actual electricity produced by the solar power system instead of renting the entire system for a predetermined rate per kilowatt-hour. Hence, it allows homeowners to save money monthly because they are only paying a lower electricity rate. Like a lease, moving or selling a property with a PPA attached can be difficult and slow.