Solar technology has advanced a lot in recent years. The cost of solar panels has decreased while the efficiency of solar cells has increased. This has led to an increase in the adoption of solar energy, which is currently the fastest growing energy source in the world.

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What is solar technology?

Solar energy is the conversion of solar energy into thermal or electrical energy. Solar energy is the most abundant and clean renewable energy source. Solar technology can use this energy to generate electricity, provide light or a warm indoor environment and heat water for domestic, commercial, or industrial use.

Advantages of solar energy?

  1. Reduce or eliminate energy bill – This is the most obvious cost of solar panels: when you install solar energy for your home, you create your own electricity, become less dependent on your electricity supplier and reduce your monthly electricity bill.
  2. Get tax credits and rebates -Depending on your place of residence, you may be eligible for net metering. Net metering is an electrical billing mechanism that allows you to use the electrical grid to store excess energy generated by your solar panel installation. Net metering credits you for the electricity produced by your solar panels that you don’t use. This means you can get a credit on your bill for unused energy and effectively sell your solar energy to the grid.
  3. Solar energy reduces carbon emissions – Solar energy is a clean and renewable energy form that can help reduce carbon dioxide and other greenhouse gas emissions and reduce our environmental impact. Even when compared to nuclear energy, solar energy wins as the more environmentally friendly option.

Zero cost solar energy options:

  • Solar leases – A 0 dollar down solar lease is a way to finance a solar energy system. A solar lease is an agreement between you and a leasing company for the electricity generated by your solar panels. In exchange, you pay a predetermined monthly “rent” based on the expected electrical output of your system.
  • Power Purchase Agreements (PPAs) – Solar PPAs, or power purchase agreements, with no upfront payment work similarly to solar leases. You and your provider agree on a predetermined price for your electricity and get all the energy savings from your solar energy system. Your PPA provider is the “owner” of the system and gets economic benefits from it (rebates, tax exemptions, other incentives).
  • Solar loans – A solar loan is a third option for 0 down solar energy. When you finance your solar energy system with a solar loan, you borrow money from a lender and repay it in monthly payments with interest. If you choose a solar loan to finance your solar panels, you are the owner of the system (unlike leases or PPAs), and you can opt for financial incentives like the Solar Investment Tax Credit (ITC).

Conclusion

There are several zero-down financing options for homeowners for solar energy, but the economic rewards vary depending on the one selected. Knowing your options and how they compare is crucial when buying solar energy to ensure you get the best solar system and best financing plan for your specific home.