Planet Green, Solar Design and Installation
8 Northview Drive, Meredith, NH 03253
Here are the simple steps to compare your options.
1. First start with an estimate of your current electric utility costs for 25 years. Use your average monthly electric bill and add the annual price of inflation. The national average inflation rate for electricity is roughly 4%, in some markets it can be more.
2. Next, compute the cost of the installation and equipment. Make sure to deduct rebates and tax credits that will reduce the total expense, to calculate the net cost of ownership.
3. Now calculate the total value of monthly payments for a loan, lease, PPA or other financing program over the life of the contract, usually 10, 15 or even 20 years. If the program has a residual value buy-out, be sure to include this in your payment calculation.
4. Last, compare the difference in totals for the three steps: 1) 25 year cost of paying the utility, 2) the 100% cash cost, and 3) total payments with a loan, lease or PPA.
With the numerous leasing offers available promising “No Money Down,”
it’s crucial to examine the fine print.
Keep in mind that if you owe federal income taxes there is no such thing as a zero down solar lease or PPA. The reason is because a mandatory condition of both of these programs is that you forfeit the 30% federal tax credit. That being said we have found the best way to compare owning or financing to leasing a solar system is to calculate the total amount of all payments. This calculation takes into consideration the 25 year warranty period for solar panels. Here are the simple steps to compare your options.