Paying for Power? Or Paying to Make Power?
One important thing to note is that there are different options when purchasing solar power for your home:
- Buy-to-own loan
- A lease agreement
- A Power Purchase Agreement (PPA)
For leasing and PPAs, there’s one big pro: you aren’t buying a system.
But both leasing and PPAs come with a lot of problems stemming from one big con: you don’t own the system.
Depending on your situation, not paying for the system itself might sound tempting. But hear us out…
With a leasing arrangement, your partner company installs the system and you’ll essentially rent the solar system from them. It’s home solar power for your needs, but you’re stuck with whatever contract they have you on and every monthly payment you make on your lease goes toward filling their pocket as opposed to paying down an equity investment. When your lease contract expires, you can either have them remove the solar system or re-up the contract (and who knows if the details will all stay the same).
Power Purchase Agreements are sort of the same thing. The partner company installs the system, but instead of a monthly rental payment, you’ll be buying power from them. Generally this arrangement is at a reduced cost compared to your monthly bill, but the fact remains the same: you’re still paying for power that isn’t yours. And that agreement doesn’t necessarily mean they won’t raise your power prices over time to keep up with the market.
On top of not owning your power and not having a guaranteed, steady payment, these agreements tack a contract onto your property. If the time comes to sell your house and you’re still under contract, you’ll have to convince any homebuyer that your property is worth its value AND the expense of the lease or PPA.
When you buy-to-own your system, you transform a monthly expense into a payment that works toward home equity. Not only that, when you buy-to-own with Blue Raven, that payment stays the same for the entire length of your loan. Power prices have been steadily rising—they’ve gained 60% in the last 20 years—but neither you nor your home buyers will have to worry about that. Solar power is all about immediate benefits and long-term value.
For example, investing in solar power for your home has the short-term gain of having the equipment to produce your own power. Generating that electricity not only powers your appliances and utilities, in some states you can also sell your power back to the energy company for cash or credits from any surplus your solar system produces.
Long-term benefits after paying off your solar system include increasing your home value by the solar system’s cost or even more. When you buy-to-own solar power for your home, you take control.