Financing: Solar Loans (e.g., Mosaic)
- Loan Term: Customer borrows the cost of the system.
- Tax Credit Benefits:
- If the customer’s tax liability isn’t enough to claim the full tax credit, the remaining balance can be sent back to Mosaic to reduce the loan principal.
- Home Value: Solar ownership increases home value and may provide tax benefits.
- Early Payoff: Mosaic allows early loan payoff with no penalties.
- Key Takeaway: Financing gives customers full ownership of their solar system, unlocking tax benefits and increasing home equity.
Power Purchase Agreement (PPA)
- How It Works:
- The PPA provider installs and owns the system, selling electricity to the customer at a lower rate than the utility.
- The agreement typically spans 25 years.
- Buyout Options: Customers can buy out the system after 6 years at market value.
- Home Sale or Transfer:
- If the home is sold, the PPA transfers as a new contract to the buyer and usually starts at year 0.
- Foreclosure Scenarios:
- The bank or homeowner must cover unpaid PPA balances during foreclosure.
- Non-Payment Consequences:
- If payments are missed, the PPA company places a lien on the property; the system remains on-site, and the unpaid amount accumulates.