Exploring Solar Energy System Financing Options in 2024

Sabrina Lopez
February 9, 2021
2 min read

[Originally published on February 9, 2021, | Updated on January 24, 2024 - 4 min read]

Exploring Solar Energy System Financing Options in 2024

Solar Financing Common Ways - 1: The journey to solar energy is about harnessing sustainable power and understanding the financial pathways to achieve it. In 2024, the landscape of solar financing is diverse, offering various options to suit different financial situations. Here, we break down the common ways to finance a solar energy system, each with unique advantages and considerations.

Cash Purchases and Loans

Cash Purchase: Paying cash for a solar system is a straightforward approach. It offers immediate savings on energy bills and maximizes ROI. The average payback period in the U.S. is approximately 9-12 years. Cash purchases allow homeowners to take advantage of significant tax incentives, like the 30% federal solar investment tax credit (ITC) and specific state credits. However, the main challenge is the high upfront cost​.

Solar Loans: These are specific loans designed to fund solar installations. Homeowners can use their solar panels immediately after installation with minimal upfront costs. Solar loans enable homeowners to benefit from tax refunds and incentives while spreading the cost over time. However, the interest on these loans adds to the total cost over time. Solar loans financed about 70% of home solar projects in recent years.

Solar Leases and Power Purchase Agreements (PPA)

Solar Leases: Leasing a solar system involves fixed monthly payments for using the solar panels and equipment. It requires little to no down payment and places maintenance responsibilities on the solar company. However, it doesn't increase home value or qualify you for solar tax credits. Transferring a lease when selling your home can be challenging and involve significant termination fees​.

PPAs: Similar to leases, PPAs involve paying for the energy generated by the solar panels, not the panels themselves. They offer the potential to save 10–30% on monthly payments. The drawbacks are similar to leases, including no increase in property value and ineligibility for tax credits.

Innovative Solar Financing Plans

Innovative Plans: Some companies, like ours, offer flexible, zero-money-down options that combine the benefits of ownership with the flexibility of a lease. Homeowners enjoy initial periods of solar power before their first bill, with the federal ITC offsetting a significant portion of the system's cost.

Tax Benefits and Rebates

Whether through cash or loans, solar system ownership qualifies homeowners for federal and state solar tax credits. The federal solar tax credit covers 30% of your solar panel installation costs. Additionally, some states offer solar tax credits with varying values and conditions​.


In 2024, homeowners will have multiple options for financing a solar energy system, each catering to different financial situations and preferences. Whether through cash, loans, leases, or innovative financing plans, solar energy is an increasingly accessible investment. For further details on solar financing options and rates, visit SuperMoney's comprehensive guide to solar loans.