Keep Solar Simple:
Should you purchase the system or sign a PPA?
What is a PPA?
Installing Solar on your home is a great way to reduce or fully eliminate your monthly electricity bill. There are multiple ways to “go solar,” tailored to fit each households’ unique needs. Many companies are advising their customers to sign 25 year power purchase agreements (PPA) where they are essentially leasing the system. Basically, that company is becoming your new power provider and installing solar panels on your rooftop to supply that power at a reduced price per kilowatt hour. In the case of a PPA, the solar company owns the solar and collects the tax benefit for the solar.
Pros & cons of a PPA
PPAs are a good option for homeowners who do not have cash on hand to purchase a system, and do not want to impact their debt to income ratio by taking out a loan. Some of the downsides of a PPA include: escalating payment plans (Your monthly payment increases each year). No Solar Tax Credit to you (The solar company gets the credit). Most of all, you do not own the system! Depending on the deal you sign, you may find it difficult to find a buyer who wants to take on that agreement in the event you want to sell your home.
You have more options with ownership
In addition to transferring the agreement, a PPA makes it difficult to add to the system later. Whether you want to add more panels, or a battery back up system in the future, a PPA will make it challenging or impossible. In any case, EPH Solar is able to offer PPAs to our customers if that is the route they would like to go. However, we make sure to use 0% escalators so your monthly payment stays fixed. Purchasing the solar is the primary method our customers choose.
Why our customers choose to own their solar
Whether you have cash on hand to purchase solar outright or you choose to finance your system, we believe purchasing the system offers the most benefit to our customers. EPH will calculate your annual power consumption based on data from your utility company. WE will then discuss with you to determine if there are any factors which may increase your usage in the future (e.g. buying an electric car, swimming pool, etc.). Finally, we will design you a customized solar solution that will fulfill your needs and present your options!
Most of the horror stories people hear about regarding solar have to do with a PPA solar system not being sized correctly and the customer being left with a solar bill plus an electric bill. At EPH, we want to avoid that at all costs and make sure your system is sized sufficiently to give you the most financial benefit!
Take pride in solar ownership
EPH Solar strongly believes the pros of ownership far outweigh the cons so we will list those first. The first benefit of owning your solar is simply that YOU OWN IT! We know… seems obvious right?! Homeowners already understand the value of owning rather than renting, and that same concept reigns true for solar as well.
No liens, no prepayment penalties, no problems!
If you finance the system and make a small monthly payment, you are paying down a balance which eventually goes away. There are also no liens and no pre-payment penalties on our loans! In the event you want to completely free yourself from a monthly payment, Go for it!. All of these points make transferring or paying off the system MUCH easier in the event you want to sell your home! The next benefit of purchasing is that YOU ARE ELIGIBLE to receive the Federal Solar Tax Credit (30% of the purchase price)!
Ownership gives you much more flexibility in the future. Battery technology will improve, and you may want to add a battery to your system. If you own it, you can do what you want with it! Adding more panels or other features to your system in the future is totally possible with solar ownership.
Better than paying insane electric company rates!
Whether you purchase your solar system or sign a PPA, your decision is reducing the demand for fossil fuels and helping lower fuel costs and reduce greenhouse gases. You should feel proud with either option! Solar ownership and PPAs are both better options than paying your electric company every month. Their rates are increasing and solar gives you the ability and freedom to set your own budget.
In addition to the satisfaction of ownership, freedom from future payments, and the tax benefits; another benefit of solar ownership is the ease of transfer in the event you sell your home.
Most people prefer to pay off their solar and recoup the cost when they sell
If you have been making payments on your system for five or ten years and then decide to sell your house, you already have equity in the system which makes negotiating a pay-off a simple transaction to take place during escrow.
The only potential downside to purchasing rather than leasing is if you take out a loan. We take out loans for all kinds of purchases in life: cars, homes, pools, etc.. As we know from experience, taking out a loan shows up on your credit report. That’s really the only potential downside. A monthly payment agreement like a PPA does not impact your borrowing power.
However, we find that the credit impact lessens over a relatively short period of time. If you make your payments on time and/or pay off the loan completely, it can actually IMPROVE your overall credit rating! There are no prepayment penalties on any Solar Loans provided by EPH Solar!
Get to know who you are working with!
Working with an experienced and transparent energy consultant makes all the difference when deciding which solution is the right fit for you and your family. Who you work with can certainly affect the cost as well!
EPH Solar was formed with the customer in mind. Our goal is to provide you with an excellent solar solution, professional installation, better pricing, and peace of mind! If you are a homeowner in California, please consider getting a free consultation from EPH before you make a purchase decision!
Homeowners usually roll the dice when they agree to a consultation. They typically have no idea who will be showing up. We want to avoid that and give you the opportunity to get to know your new Energy Consultant!
100% Five Star Reviews So Far!
Whether you are working with Eric or another EPH consultant, we want to be your first point of contact. Our goal is to keep things simple for you. If you ever have any questions or concerns about your solar, please reach out directly to your EPH representative for the quickest response. Many of our customers become personal friends!
Plain and simple, EPH will not sign any agreement with a new customer if your monthly expenses increase as a result of the agreement. Solar should save you money, not cost you! Our customers pay zero out of pocket expenses for professionally installed and maintained solar. We encourage you to spend that money elsewhere, like on a vacation you’ve always wanted for example.
Your system should produce what we designed and agreed to. If your system is not producing properly, your EPH Solar Rep will work diligently on your behalf to resolve any issues to your satisfaction. Ask us more about our production guarantee! Okay it’s simple really.. 25 years guaranteed production! That means we pay if it doesn’t work.