PROS:
- Good for situations where cash is limited
- You are familiar and comfortable with a monthly payment schedule
- Some financing programs include system maintenance, eliminating your risk if equipment should fail
- Some programs offer PV financing rates that are competitive with the rate of historical electric utility tariff increases
CONS:
- Traditional financing vehicles, such as loans, may result in a higher total cash outlay due to interest charges
- The fine print in leases and power purchase agreements can be onerous—and these agreements are non-negotiable
- You need a FICO score better than 640
- Going through a credit check and approval process can delay the purchase
- There may be restrictions when selling your home—be sure to read the fine print in any agreement you sign
- Products offered through second-tier companies may have lower credit requirements, but along with this, may have high interest rates, offsetting any financial gains afforded by the PV system
