Understanding Solar Power Versus the Utility Grid
In order to understand the argument of “no-cost” solar, we need to first understand how solar paneling for a home compares to the utility grid service. Most homeowners tend to take for granted their utility billing; no matter how you slice it, you’re going to have to pay for electricity.
Every month, you spend money for the utility service; a solar panel system presents itself as a way to stop paying those bills. Because of this, solar and the utility grid are either-or expenses, meaning you don’t pay for both, just one*. Because of this, most homeowners find themselves profiting immediately when they switch to solar power for their home because the costs of power are reduced, not increased.
*When a solar panel system is sized properly; not including any mandatory connection fees charged by the local utility company
The Different Ways to “Go Solar”
Given that solar panels are a solution to the problem of utility expenditure, the question remains for “how” to make the switch solar. Financially speaking, there are 3 primary ways to switch to solar, unlike the 1 and only way to pay for power through the utility grid. They are as follows:
Cash Purchase
A homeowner purchases a solar panel system to remove their utility billing in one lump-sum expense. This is not a “no-cost” option.
Traditional Financing
A homeowner opts to purchase a solar panel system to remove their utility billing by making payments for the system. Typically this is a “no-cost” option.
Lease/PPA
A homeowner opts out of purchasing a solar panel system and instead has a system added to their property that they lease from or purchase power from another company (a solar installer or financier). This is your current payment option with the utility grid company. This is also a “no-cost” option for solar.
Once Completion has been reached, you are all set to enjoy the luxury of your new power system. Congrats!
*All durations are estimations; exact timelines should be fielded directly from your installer.
Defining “No-Cost” for Loan and Lease Options
Traditional financing and lease/PPA options typically do not have any down payment, install costs, or fees associated with the install and activation of the solar panel system. Spartan Solar prides itself and its partners in offering these options without upfront costs across all of their markets across the United States, including their home state of Florida. Because of this, you can make the transition to solar power for your home as a qualifying homeowner without having to come out-of-pocket for any expenses.
All that a homeowner is left to pay is the monthly payment for the system or the electricity that the system produces. Due to current market conditions, almost universally solar is less expensive month-to-month than the utility grid for the same power, meaning that the only financial ramifications of going solar for the average homeowner are positive ones; money gets added to the bank account, not subtracted from it, when you transition to solar power.
This is the picture the traditional marketing strategy of “no-cost” or “free” solar tries to paint for homeowners across the US: you can install a system for solar power on your home free-of-charge day-one and your utility costs go down, not up.