Once you’ve decided how important ownership is on your list of priorities, you can start narrowing down financing options. We’ve covered this topic in a previous blog post, but the three most popular financing options include:
- Cash Purchase
- Solar Loan
- Solar PPA
When it comes to financing your solar project, there is no one-size-fits-all answer. If you’re overwhelmed by your options, partnering with a solar partner like Verogy can help streamline the process while finding an optimal solution for your needs and goals.
Along with financing, understanding what incentives are available is a critical part of maximizing the value of your solar energy system. Depending on your region and industry, you likely qualify for one or more incentive program. One of the best places to start is with the U.S. Department of Energy’s Tax Credits, Rebates & Savings search engine. You can refine your search to include your state, eligibility, and category.
Net energy metering (NEM) is a billing arrangement that allows you to deliver unused energy back to the grid. By doing so, you earn credits at the retail energy rate. In the event that you need to tap into the grid for supplemental power, those credits are applied to your monthly utility bill, so you may not even be charged for using that electricity. If you don’t end up using any credits for a given month, they roll over to the next month, so you may never have to pay for electricity again.
Solar Energy Credits
Solar renewable energy credits (SRECs) allow you to track and potentially profit from the solar energy your system generates. The more electricity your system creates, the more SRECs you receive. You can then choose to sell these credits as a way of offsetting the cost of your solar installation and generating positive cash flow.
Ready to maximize the ROI of your energy project? While you can always tackle it alone, partnering with the solar experts at Verogy can help ensure you’re getting the most out of your next solar investment. Contact our team today and we’ll help you leverage your financing options for the best value in the industry.