Financing Options: Cars vs. Solar Power
The auto industry has been offering the same choice — loan or lease? — for ages, and there are some high-level similarities in these finance products in both industries:
- With both solar loans and car loans, the borrower will own the product at the end of the term.
- With both solar leases and car leases, the lessee does not own the product, and when the term ends, has a choice of purchasing it, returning it, or signing another lease.
- In both industries, if the lessee wants to get out of the lease before the end of its term, he or she is subject to an early termination fee.
- For both industries, the economics of leases can be ambiguous in comparison to the relatively simple terms of loans.
Car financing and solar financing differences
Even if you’ve thoroughly investigated the pros and cons of car leases and loans, you shouldn’t necessarily jump to the conclusion that it will make you an expert in solar financing. While they may be similar, they’re not the same!
Here are a few of the ways that car and solar financing products differ:
Shop around for the right solar financing option
When buying or leasing a car, you can use Kelley Blue Book and TrueCar to figure out the right price to pay. The EnergySage Solar Marketplace offers the equivalent functionality for solar, providing clear side-by-side comparisons and a network of qualified solar installers to provide the information you need to ensure that you get the best value for your solar energy system. Explore all of the solar financing options available to you, including solar loans and solar leases and PPAs, before you make your solar financing decision.