If your home is a good fit for a solar system, there are two ways to go about moving forward to having a solar home. You either purchase the equipment, or purchase the power that the equipment generates. Like most decisions we have to make, there are pros and cons to the options. You can decide which plan works best for you based on the factors that are most important to you. The common positives that Sunrun solar plans have are the rate hike protection, warranty, and service that you get for the life of your agreement. Say goodbye to the endless rate spikes that your utility provider gives you year after year. Take note that in order to seamlessly move forward with these plans, your home must pass inspection in order to qualify. This inspection does not cost you anything.
Levelized Power Purchase Agreement
With a PPA, you pay Sunrun a fixed price for the power the system produces – and that’s all you pay for. It’s a similar plan to how you’re already set up with your current utility provider.
The PROS:
Zero out of pocket.
Sunrun owns all equipment, so setup, maintenance, repair, and take down cost you nothing. If you get a battery, this is also replaced at no cost when it reaches its end of life.
No sales tax.
You may also purchase the equipment at fair market value anytime after five years or at the end of the agreement.
The CONS:
Not all areas offer this plan.
Monthly Lease
With a monthly lease, you pay Sunrun a fixed monthly “rent” to use the solar system. Why do this and not the PPA? Because the PPA is not offered in all areas. Every city has its own regulations, and some do not allow the PPA.
The PROS:
Zero to little down.
Sunrun owns all equipment, so setup, maintenance, repair, and take down cost you nothing. If you get a battery, this is also replaced at no cost when it reaches its end of life.
This is the closest thing to a PPA if your city doesn’t allow the PPA.
You may also purchase the equipment at fair market value anytime after five years or at the end of the agreement.
The CONS:
There is sales tax on the cost of the equipment.
Full Lease (Prepaid)
With a full lease, you prepay Sunrun 20-25 years of energy costs at a discounted rate. After this, you no longer have monthly payments.
The PROS:
You save money by paying upfront.
Sunrun owns all equipment, so setup, maintenance, repair, and take down cost you nothing. If you get a battery, this is also replaced at no cost when it reaches its end of life.
You may also purchase the equipment at fair market value anytime after five years or at the end of the agreement.
Monthly Loan
With a monthly loan, you own your solar equipment. You pay your loan provider monthly, and any power generated by the system costs you nothing.
The PROS:
Zero down.
Complete freedom from utility bills.
Eligible for federal tax credits and state incentives.
Increases property value.
The CONS:
Homeowner is responsible for the system’s maintenance and insurance costs.
Homeowner is responsible for future battery replacement.
Electrical panel upgrade if needed is usually extra.
There is sales tax.
Full Purchase
With a full purchase, you own the system outright, have no monthly bills, and any power generated by the system costs you nothing.
The PROS:
Complete freedom from utility bills.
Eligible for federal tax credits and state incentives.
Increases property value.
The CONS:
Homeowner is responsible for the system’s maintenance and insurance costs.
Homeowner is responsible for future battery replacement.
Electrical panel upgrade if needed is usually extra.
There is sales tax.
High upfront payment.
We hope this helps you make a decision on which solar system makes most sense for your home. Don’t hesitate to call or text John Choplin anytime at 818.825.3344. We look forward to hearing from you!
