Can You Own Solar With $0 Down and Be Cash Positive?
May. 07, 2020
Did you know that you can install a custom-designed system of solar panels for your Massachusetts home without making a down payment? You may be wondering, “What’s the catch?”
It used to be that zero-down solar installation options were either a solar lease or a Power Purchase Agreement (PPA), which might not be the best option for homeowners who want to own their solar. But not anymore! Here is what you should know about your options to invest in solar with no money down, while still remaining cash positive - even from day one!
Solar Financing Options with No Down Payment
You can now find solar financing through a number of sources, allowing you to choose the best option for your long-term financial health. Lending sources include:
The types of loans from these providers that require no money down can include solar specific loans, Home Equity Loans, or Home Equity Line of Credits (HELOC). Financing options based on your home equity can also provide more flexibility when it comes to qualifying, depending on the provider.
Staying Cash Positive with Solar Loans
Now you may be thinking, if there is no money down, doesn’t that make the payback period much longer? How can a newly financed solar PV system maintain cash positivity if you are paying a monthly loan payment as well?
The idea is simple: A properly designed solar PV system will greatly reduce your electricity bill. At Boston Solar, we have installed many systems that have eliminated a homeowner’s electricity bill, or even given them an energy bill credit (a positive balance) through net metering. This helps relieve the monthly financial burden, but there are still a few more ways to keep your renewable energy system cash positive.
There are a number of solar incentives that can reduce your upfront costs, and even generate income to offset your monthly payments:
Utilities across the state of Massachusetts are incentivizing residential solar installation by paying homeowners for their monthly solar production for up to 10 years. This is based on a declining rate block depending on when you’ve signed up for your incentive, so the sooner you can install solar the better! When you put your SMART incentive check toward your solar loan payment, we have seen many Bay Staters pay less on their monthly bills than before they installed solar.
State and Federal Solar Tax Credits
If you install solar before the end of this year, you can take advantage of the reduced tax liability of the 26% federal solar tax credit, also called the Investment Tax Credit. This incentive allows homeowners to reduce their federal taxes due by 26% of the total costs of their solar installation completed in 2020. For example, if your system cost is $30,000, you could be eligible for a $7,800 tax credit. You can put those tax savings to use, reducing the payback period of your loan and giving you more years of free and clear ownership of your solar PV system.
On top of that, the state of Massachusetts also offers an additional 15% tax credit, up to $1,000, off of your state income tax liability for the year you install.
Wondering What Cash Positive Solar Looks Like For You?
Just think, you could continue to pay your utility year-after-year or own your own energy generation system with solar. If you are concerned your energy needs may prevent you from staying cash positive when installing solar, we can help you run the numbers. From assessment, design, and financing, a solar quote from the number one Massachusetts based solar installer at Boston Solar will give you all the answers you need to make the best decision for the future of your home energy.
Boston Solar is dedicated to prioritizing the health and safety of our employees and our customers. If you have concerns about your free solar quote amidst the COVID-19 outbreak, you can learn more about our current sanitization and operating procedures here.
Want to know if you can finance your solar installation for $0 down and be cash positive? We can help you run the numbers. Call Boston Solar for a free solar quote at 617-858-1645 or get in touch.