Financing Options

Solar Financing Options in Maine

More Mainers are going solar, and for good reason. The cost of solar has dropped significantly over the last decade, making it more affordable and attainable than ever.

If you’re considering solar for your home, one of the first questions is how to pay for it. Maine homeowners have several solar financing options, including cash purchases, solar loans, and ownership-based financing options like Propel.

Each option works differently and comes with its own benefits depending on your budget, goals, and timeline. Understanding these options can help you choose the approach that makes the most sense for your home.

How to Compare Solar Financing Options

When deciding how to pay for solar, it’s helpful to think about a few key factors:

Upfront cost vs long-term savings
Monthly payment vs overall return
Ownership timeline and flexibilty

The section below breaks down the most common options available to Maine homeowners.

1. Solar Loans in Maine: A flexible alternative to cash

Financing your system with a solar loan lets you own it while spreading out the cost.

Common options include:

Standard loans through Maine Solar Solutions
We offer fixed-rate loans with no money down and a consumer-friendly process.
Home Equity Line of Credit (HELOC)
You can leverage your home’s equity for potentially lower interest rates.
Mortgage refinancing or cash out
You may be able to refinance your mortgage and use those funds to pay for your solar installation.

This option is best if:

You want to enjoy solar’s financial and environmental benefits on a budget
You can’t pay the full cost of a solar array upfront
You hope to invest your cash on hand to earn a lower interest rate
You prefer predictable monthly payments

2. Propel: Lower Upfront Cost with a Path to Ownership

Propel is an ownership-based solar financing option that helps reduce the upfront cost of going solar while still leading to full system ownership.

During the first five years, the project uses a short-term ownership structure to qualify for certain solar incentives. Those incentives are already built into the lower cost of your system, and can reduce the total upfront cost of your solar installation by 20-30% in many cases.

After five years, ownership transfers fully to you automatically. Your loan terms do not change during this time.

This option is best if:

You want to go solar with no upfront cost
You want lower monthly payments than many standard loan options
You plan to stay in your home for at least five years to take full advantage of the program

3. Paying for solar in cash

Paying for your system in cash offers the greatest long-term savings and the shortest payback period. You’ll avoid interest and fees, and you’ll own your solar system outright from day one.

If your system meets your electricity needs, you’re essentially pre-paying for decades of power—while protecting yourself from future utility rate increases.

This option is best if:

You want full ownership from the start
You want to maximize your long-term savings
You prefer not to take on a loan or monthly payment

Adding solar to new construction

If you’re building a new home, that’s one of the best times to add solar.

Solar can often be financed as part of your home build, allowing you to roll future electric costs into your mortgage. This can make solar one of the most cost-effective ways to power your home long-term.

If you’re planning an all-electric home with heat pumps and hybrid water heaters, adding solar can significantly reduce—or even offset—your future utility bills.

Understanding solar financing terms

Before signing a solar financing agreement, it’s important to understand the fine print. Here’s a detailed overview of key terms and considerations you’ll encounter. Remember that this list is not necessarily comprehensive, so always have a trusted party help you read over any agreement.

Definition: Ability to pay off the remaining balance of the solar system before the end of the contract.
Considerations: It’s important to know under what circumstances you can purchase your solar array outright, how the buyout price is calculated, and whether any penalties or fees are associated with an early buyout.

Definition: Duration of the solar financing agreement or lease.
Considerations: Assess contract length, alignment with system lifespan, and terms for end-of-contract scenarios.

Definition: Credit score and financial criteria for solar financing qualification.
Considerations: Ensure compliance with lender’s credit requirements, as lower scores may lead to higher interest rates or disqualification.

Definition: The solar electric system dealer/installer charges for sale and installation-related services.
Considerations: Request a breakdown of fees; compare with industry standards; understand their necessity.

Definition: Initial payment made at the start of a solar financing agreement.
Considerations: Evaluate the impact of down payment size on monthly payments and total cost.

Definition: Provisions for annual increases in payment under a solar lease or PPA.
Considerations: Understand increase rates and their impact over the contract term. While the initial benefit may be substantial, this is subject to change over time.

Definition: Costs associated with the financial arrangement for solar system purchase or lease.
Considerations: Review all financing-related fees; assess their impact on total cost; explore different financing options.

Definition: Terms for transferring the solar agreement upon selling the home.
Considerations: Check the ease of transfer to a new homeowner and any related fees or credit requirements.

Definition: Unnecessary or excessive charges in a solar financing agreement, often for vague services.
Considerations: Be vigilant about vague fees; compare with other providers; question their legitimacy.

Definition: Unit of power measurement (1,000 watts) for solar system capacity.
Considerations: Helps determine energy production capability and solar electric system size.

Definition: Guarantees for specified electricity production levels from the solar system.
Considerations: Understand compensation for underperformance and related terms.

Definition: Rules for crediting excess electricity generated by solar electric systems back to the grid.
Considerations: Ensure clarity on the net metering agreement between the customer and utility company, credit rates for excess generation, and policy changes.

Definition: Terms defining maintenance and repair responsibilities of the solar system.
Considerations: Third-party owners often handle this in leases or PPAs; otherwise, it’s the owner’s responsibility.

Definition: Contract where a third party installs, owns, and operates a solar system on a homeowner’s property.
Considerations: Homeowners purchase generated power at a predetermined rate.

Definition: Options to pay off part or all of the solar electric system costs in advance.
Considerations: Assess benefits, restrictions, and penalties of pre-paying.

Definition: Expected electricity output of a solar system.
Considerations: Ensure realistic estimates and understand the implications of underperformance or overproduction.

Definition: Loan backed by collateral, typically the borrower’s home.
Considerations: Often have lower interest rates and risk of collateral seizure in case of non-payment.

Definition: Agreement to lease a solar system with fixed monthly payments.
Considerations: Understand lease terms, duration, and costs compared to utility bills.

Definition: Technology converting sunlight directly into electricity.
Considerations: Clean, renewable energy source; system size measured in kW.

Definition: Tradable certificates representing the environmental value of solar-generated electricity.
Considerations: It can be an additional revenue stream for system owners.

Definition: Loan not protected by collateral, often with higher interest rates.
Considerations: This option is riskier for lenders and is an option for borrowers who do not want to use their home as collateral.

Getting started

The right financing option depends on your goals, budget, and preferences. Whether you purchase solar panels directly, finance with a loan, or explore other options, Maine Solar Solutions is here to help. Our expert consultants can walk you through your options and answer your questions. Contact us today, and let’s find the financing plan that works best for you.

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Maine Solar Solutions, LLC does not provide financial, or legal advice. Always consult a qualified professional before making financing decisions.