QUICK SELF-CHECK
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FINANCING • LOANS • PPAs • COMPARISONS
Financing: compare like an engineer
The same hardware can be a great deal or a terrible deal depending on contract structure. Focus on cashflows, fees, and assumptions.
Three common paths
| Path | Good for | Gotchas |
|---|---|---|
| Cash purchase | Best long-term return on investment, simplest. | Opportunity cost of capital. |
| Loan | Keep cash, still own system. | Dealer fees can hide in “low APR” offers. |
| power purchase agreement/lease | Low upfront cost. | Escalators, buyout terms, and home-sale complexity. |
The “low APR” trap
Some solar loans use large upfront dealer fees to advertise low interest rates. Compare total paid and effective APR.
Ask: “What is the cash price vs financed price?” If they won’t answer clearly, walk.
What to demand in writing
- System size (kilowatt DC), expected annual kilowatt-hour
- Equipment models and warranties
- Financing APR, term, fees, and prepayment terms
- Escalator details (power purchase agreement/lease)