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Definition of Solar Terms

 
 

Solar Financing

  Solar Financing
    A loan provided to a property owner to cover the entire cost of a photovoltaic solar system. The property owner pays the solar loan off over time.
   
  Solar Leasing
    A solar developer pays for the installation of a solar system. The solar consumer agrees to pay for the equipment at a set price per month.
   
Solar Power Purchase Agreement (PPAs)
  Another party owns the photovoltaic solar system on a property. The property owner agrees to pay for the electricity it produces.
   
Home Equity to Purchase Solar
 

In the past, this is how property owners paid for solar.

The home equity loan means that if a property owner stops paying the loan, the loan provider can take equity from his home to pay for the system. This this is more secure than an unsecured loan, it saves property owners thousands of dollars in loan payments.

   
Solar Renewable Energy Credits (SRECs)
 

A solar renewable energy credit is a certificate for renewable energy production. Since the government is talking about requiring companies to produce so much renewable energy, these companies have two options:

    • Purchase Renewable Energy Systems
    • Purchase Renewable Energy Credits
 
PACE Financing
  Property Assessed Clean Energy, or PACE, is a program provided by city to finance solar installations through property taxes. The solar installation is paid back over 15-20 years.
 
Solar Feed-in Tariffs (FITs)
  A feed-in tariff required utility companies to pay government-set rates for renewable power for a set period of time.
 
   
   
   

 


 

 

 
 
 
 
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