Four options, we offer two
How people actually pay for this work
The cheapest money is nearly always the money with no dealer fee buried in the contract price. That is usually cash, and after that a credit union line. We will say so even when it costs us the finance commission.
Sample rates, discussed openlySample rates for this demo site
The four ways, with the disadvantages left in
- 01
Cash
Lowest total cost, full ownership
You pay the installed price, you claim any credits you qualify for, and you own the asset outright. On a 7 kW DC array at $2.95 a watt that is about $20,650 before incentives (sample).
In its favour
- No interest, no fees, no lien
- Simplest possible house sale later
- Best lifetime cost per kWh produced
Against it
- Largest amount of capital up front
- Credits arrive at tax time, not at signing
- 02
Solar loan
Secured or unsecured, 7 to 20 year terms
Sample rates of 6.49 to 9.99 percent APR depending on term, credit and whether the loan is secured. You still own the system and still claim any credits you qualify for.
In its favour
- You own the asset and the incentives
- Monthly payment often near the avoided bill
- No escalator clause
Against it
- Interest adds to lifetime cost
- Some products charge a dealer fee built into the price
- A UCC filing may appear on the property
- 03
Credit union HELOC
Often the cheapest borrowed money in Colorado
A home equity line at a sample 7.25 percent APR frequently beats dedicated solar loan products, with no dealer fee buried in the system price.
In its favour
- Usually the lowest rate available
- No dealer fee inflating the contract price
- Reusable for the heat pump next year
Against it
- Secured against the house
- Requires equity and an appraisal
- Variable rate on most products
- 04
Lease or power purchase agreement
We do not offer these
Under a lease or PPA a third party owns the system, claims the incentives and sells you the output, usually with an annual escalator. They complicate house sales and rarely serve the homeowner as well as ownership does.
In its favour
- No capital required
Against it
- You do not own the asset or the incentives
- Escalator clauses raise the price every year
- Assignment at sale can delay or kill a closing
- Not something GreenLeaf sells
Side by side
The six questions that decide it
| Cash | Solar loan | Credit union HELOC | Lease or PPA | |
|---|---|---|---|---|
| Who owns the system | You | You | You | A third party |
| Who claims the incentives | You | You | You | They do |
| Sample rate | None | 6.49 to 9.99 percent APR | About 7.25 percent APR, variable | Not applicable, but an escalator usually applies |
| Dealer fee inside the price | No | Often, and rarely disclosed | No | Built into the rate |
| Effect on a house sale | None | A UCC filing may need releasing | Paid at closing like any lien | Assignment can delay or kill a closing |
| Do we offer it | Yes | Yes | We will point you at one | No |
Rates and fine print
Questions about paying for it
Because under both, a third party owns the system, claims the incentives and sells you the output, usually with an annual escalator. They complicate house sales, they are hard to value, and after twenty years of watching them we do not think they serve homeowners well enough to offer.
A finance company pays the contractor less than the contract price in exchange for offering a low headline rate, and the contractor raises the price to compensate. It is why the same array can be quoted at $2.95 a watt cash and $3.60 a watt on a 1.99 percent loan.
Frequently, yes. It usually carries a lower rate than a dedicated solar loan and there is no dealer fee inflating the contract. The trade-off is that it is secured against the house and most products are variable rate.
On longer terms, often roughly. Be careful with that framing though: a 20 year loan with a payment matching today's saving costs considerably more in total than a 10 year loan at the same rate.
Yes. A deposit at signing, a progress payment at material delivery, and the balance on commissioning and permission to operate. We do not ask for the full amount up front and you should be wary of anyone who does.
A priced proposal, before any finance conversation
We quote the work first and discuss how you pay for it second. That order stops the finance product from quietly setting the price.