Previous Story
Financing options for your home solar system
With the 30 percent tax credit for solar system expiring on Dec. 31, 2016, solar panels are a wise investment that will deliver returns for years to come. Whether you purchase panels directly or through financing option that is right for you, you will benefit from affordable energy output for years to come.
Cost: A five-kilowatt system for a single-family home with a utility bill of $300 per month in Guam would cost a customer an estimated $12,250 after the tax credit with a payback period of 3.4 years. Thereafter, the customer will receive $300/month of free power.
Purchase directly: Maximizing the value of the returns of your hard work is important. Why earn a 1-percent return from a traditional savings account when you realize a significantly higher yield by investing in solar? The average return on investment on a solar system is between 8 and 10 percent—greater than a savings account and more stable than the stock market.
Finance through your banking institutions: Banks and credit unions offer a wide range of financing options for their customers, and many even have special green lending programs that are ideal for financing home solar installations.
Power purchase agreements: Under a “PPA,” a third party owns and maintains the customer solar system, selling the kilowatt-hours at a fix rate back to the customer. This provides customers low capital costs but pay for a term that may last 20 years as well as not benefiting from the tax credit. (Jose S. Servino, P.E., CEM, CDSM/Advanced Engineering Consulting Company)
