Ground Mount Solar Financing Options

Cash Purchase

Paying cash provides the best long-term return on investment. No interest payments means you keep more of your energy savings.

Advantages:

• Highest lifetime savings (no interest costs)
• Immediate full ownership
• Simplest transaction—no loan applications or monthly payments
• Best payback period (typically 6-10 years)

Disadvantages:

• Requires $15,000-$50,000+ upfront depending on system size
• Ties up capital that could be invested elsewhere
• Opportunity cost if investment returns exceed solar savings

Best for: Homeowners with available cash who want maximum long-term savings and don't need the capital for other investments.

Solar Loans

Solar loans are specifically designed for solar installations. They're offered by banks, credit unions, and specialized solar lenders. Many installers partner with lenders to offer financing at signing.

How they work:

• Unsecured (no collateral) or secured by the solar equipment
• Terms typically range from 5-25 years
• Fixed interest rates from 4-9% depending on credit and term
• $0 down options available with good credit
• Monthly payments often offset by energy bill savings

Types of Solar Loans

Advantages:

• $0 down preserves your cash
• You own the system from day one
• Monthly payment can be less than previous electric bill
• No home equity required

Disadvantages:

• Interest adds to total system cost
• Longer terms mean more interest paid
• Some loans have prepayment penalties

Best for: Homeowners who want to own their system but prefer to preserve cash and spread payments over time.

Home Equity Line of Credit (HELOC)

A HELOC lets you borrow against your home's equity. You get a credit line to draw from as needed, paying interest only on what you use.

Advantages:

• Often lower interest rates than unsecured solar loans
• Interest may be tax-deductible (consult a tax advisor)
• Flexible—draw only what you need
• Can use for solar plus other home improvements

Disadvantages:

• Your home is collateral—defaulting risks foreclosure
• Variable rates can increase over time
• Requires sufficient home equity
• Application process similar to mortgage refinance

Best for: Homeowners with significant equity who want lower rates and are comfortable using their home as collateral.

Home Equity Loan

Similar to a HELOC but structured as a lump-sum loan with fixed payments. You borrow a specific amount and repay over a set term.

Advantages:

• Fixed rate provides payment certainty
• Interest may be tax-deductible
• Often lower rates than unsecured loans
• Long terms available (up to 30 years)

Disadvantages:

• Home is collateral
• Closing costs add to total expense
• Less flexible than HELOC
• Requires appraisal and full underwriting

Best for: Homeowners who prefer fixed payments and want to lock in a rate for the life of the loan.

Solar Lease and Power Purchase Agreements (PPAs)

With a lease or PPA, a third party owns the solar system on your property. You pay them for the power it generates (PPA) or a monthly lease payment (lease).

Important: Leases and PPAs are uncommon for ground mount systems. Most lease/PPA providers focus on rooftop installations because they're simpler and lower risk. If you're considering ground mount, expect to purchase or finance your system.

Advantages:

• $0 down, no loan required
• Provider handles maintenance and repairs
• Immediate savings on electric bill (usually)

Disadvantages:

• You don't own the system
• Smallest long-term savings of any option
• Contracts are typically 20-25 years
• Can complicate home sale
• Rarely available for ground mount installations

Best for: Rooftop installations where the homeowner wants to avoid any upfront cost or loan obligation. Not typically an option for ground mount.

Comparing Total Costs

The cheapest option upfront isn't always the cheapest overall. Here's how a $30,000 system compares across financing methods:

*Total cost = principal + interest over loan term. Does not include energy savings, which offset these costs.

What About State and Local Incentives?

Many states offer additional incentives for solar installations:

• State tax credits: Some states offer their own tax credits for solar installations.
• Rebates: Utility or state rebates that reduce your upfront cost.
• SRECs: Solar Renewable Energy Credits you can sell in certain markets.
• Property tax exemptions: Many states exempt solar installations from property tax increases.
• Sales tax exemptions: Some states waive sales tax on solar equipment.

Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for current programs in your state. Your installer should also be familiar with local incentives.

Questions to Ask Lenders

Before signing any financing agreement, clarify these points:

1. What is the APR (not just the interest rate)?
2. Are there origination fees or closing costs?
3. Is the rate fixed or variable?
4. Are there prepayment penalties?
5. What happens if I sell my home?
6. Is the loan transferable to a new owner?
7. What's the total amount I'll pay over the loan term?
8. Are there any dealer fees built into the loan?

The Bottom Line

For ground mount solar, you'll likely choose between cash, a solar loan, or a home equity product. Each has tradeoffs:

• Cash maximizes savings but requires significant upfront capital
• Solar loans preserve your cash with manageable monthly payments
• Home equity options may offer lower rates but put your home at risk

The "best" choice depends on your financial situation, risk tolerance, and investment goals. Run the numbers for your specific system cost and compare total lifetime costs, not just monthly payments.