Finance or Purchase a System

[Steve C]

Hello,

My question is likely obvious from the title. Technically I could pay upfront for a system to meet my desired energy needs. But, that would chew up a healthy chunk of my savings and therefore some of my piece of mind. Are California programs like CaliforniaFirst or PACE (and the associated interest (tax deductible ???)) appealing alternatives? And yes, I know that no two financial situations are the same. For what it's worth, I am in the N.California foothills and my roof faces almost due south.

[J.P.M.]

Hello,

My question is likely obvious from the title. Technically I could pay upfront for a system to meet my desired energy needs. But, that would chew up a healthy chunk of my savings and therefore some of my piece of mind. Are California programs like CaliforniaFirst or PACE (and the associated interest (tax deductible ???)) appealing alternatives? And yes, I know that no two financial situations are the same. For what it's worth, I am in the N.California foothills and my roof faces almost due south.

The world is full of choices and this one is indeed yours to make. From a cost/investment/business standpoint, if you can find an investment that produces a greater return than the solar savings a PV system will allow, then, that alternate is a more cost effective choice for the funds. However, there is more to life than financial gain.

[solar_newbie]

Hello,

My question is likely obvious from the title. Technically I could pay upfront for a system to meet my desired energy needs. But, that would chew up a healthy chunk of my savings and therefore some of my piece of mind. Are California programs like CaliforniaFirst or PACE (and the associated interest (tax deductible ???)) appealing alternatives? And yes, I know that no two financial situations are the same. For what it's worth, I am in the N.California foothills and my roof faces almost due south.

There are 3 questions :
- do you need to pay if you borrow from California First and CARE? Can you foreclose the house and not pay them if something happens?
- what do you do with your saving ? Do you earn less than 1% interest for your saving?
- if you use some of your saving, does the money leftover enough to cover for your 6 months expense?

If the answer are yes on those, use your saving.
Otherwise, borrow...

[altec]

Really does depend on whether or not you can afford to repay the borrowed amount required.

[azdave]

I would never have installed solar if I couldn't pay for it with an upfront purchase. Borrowing money is what keeps you poor and others rich. I would also not want anything that might encumber the sale of my home in the future. I was fortunate that I got my system commissioned with a 20-year, fully transferable agreement from my power company. With the new rules coming from Arizona POCOs in the last year I would not go solar today as the payback is too long.

Going solar is trendy, but for me, it was a financial decision that will benefit me for a long time to come at low risk. The money I save on the electric bill goes towards my 15-year home loan. The only loan I have.

[J.P.M.]

Really does depend on whether or not you can afford to repay the borrowed amount required.

Well, with a bit of thought, if the loan payments amount to less than the reduction of the utility bill that the solar installation produces, wouldn't that make life a bit easier ? Cash is usually best, but other options can also produce net savings, short term, long term, or both (or neither). That's why a number crunch is necessary.

[thejq]

Hello,

My question is likely obvious from the title. Technically I could pay upfront for a system to meet my desired energy needs. But, that would chew up a healthy chunk of my savings and therefore some of my piece of mind. Are California programs like CaliforniaFirst or PACE (and the associated interest (tax deductible ???)) appealing alternatives? And yes, I know that no two financial situations are the same. For what it's worth, I am in the N.California foothills and my roof faces almost due south.

Sounds like you have enough cash but just don't want to spend it all. If you have equity in your home, why not take out a HELOC (free in most places) as a backup, and use your cash for the purchase? Use the HELOC for emergency if needed. The only risk is that HELOC can be taken away if your financial situation changes. But you will most likely know that before the bank, so you can take the $$$ out first.