Given ever increasing electricity prices, now is a great time to invest in solar and lock in your energy costs for the future. At Cobalt Power Systems Inc., we provide options for you to pay for your system. You can pay cash, purchase with a loan, or can finance it with the Property Assessed Clean Energy (PACE) financing program. Each payment option has its advantages.
When you purchase your system with cash, you own your system from day one. Owning the system allows you to take advantage of government incentives. The main government incentive is the Federal tax credit that gives you a credit of up to 30% of the system cost on your income taxes.
Commercial solar systems could also be eligible for federal and state depreciation. Furthermore, if Renewable Energy Credits (RECs) become active in California, the owner of the system gets the RECs. These can be thousands to tens of thousands of dollars per year — for the life of the system.
Property Assessed Clean Energy (PACE) is a great way to finance your solar PV system, with no out-of-pocket costs up front. With PACE financing, you pay for your PV system on your property tax bill every six months. You can choose a term of five to 30 years for your payments, and you can pay it off at any time with no penalty.
With most projects, your first payment does not come until six to 12 months after your PV system is installed and goes live. This way you can enjoy your utility bill savings from day one and delay your payments.
With PACE, you have the best of both worlds — you own your PV system, but you pay for it over time. You still get the 30% federal tax credit, and you keep all the utility savings. On the other hand with a Power Purchase Agreement (PPA), you give up the federal tax credit, as well as the majority of your utility savings, to the PPA provider. PACE is a great way to finance your new PV system and keep all the benefits.
Many customers are choosing to finance their solar system through loans from their banks and credit unions. Owning your solar system allows you to take advantage of government benefits as well as tax deductible interest. Loan payments can be less than your monthly bill savings, allowing you to save without making a down payment.
Questions about installing a solar panel system in the San Francisco Bay Area? Call (650) 938-9574 today to get more insight on our costs and financing.