Cash purchasing the solar system is the best choice if you have cash and want to invest it, especially considering the current low interest rates. This method also has the shortest payback period, fewest conditions, and qualification criteria.
Financed purchasing the solar system also provides many of the benefits of cash purchasing with the most salient benefit of not needing to pay the entire amount upfront. But, financing’s associated fees and interest payments will reduce the monthly savings and will make the payback period longer and will reduce your ROI, compared to a cash purchase. Also, most financing solutions will also have qualification requirements.
PACE financing is a program that allows homeowners to pay for solar through an increase to your property taxes. The PACE program does not have any credit requirements and it is based only on home equity and property taxes. This program is great for homeowners who do not qualify for traditional financing. Solar interest payments might be also tax deductible which is a great advantage.