Cash Purchase
Enjoy Maximum Savings by buying a Solar Energy System on Cash!
How Does Cash Purchase Work?
Cash purchase of a solar energy system is the best way to extract maximum benefit from it. That’s because you won’t pay any interest, get ownership benefits, and save on electricity costs from month 1.
- Full System Ownership – Enjoy all the long-term benefits of solar
- Maximized ROI – Get the highest return on your solar investment
- No Interest Payments – Avoid extra costs associated with financing
Benefits of Buying Solar Energy System with Cash
Apart from saving time, there are numerous other reasons to buy a solar energy system using cash.
1. Maximum Savings
Purchasing a solar energy system with cash helps you save on interest costs. This lowers the cost of the solar system. You also experience maximum savings from day 1 since you need not make monthly payments. Proper planning can reduce your electricity bill to almost $0 from the hundreds dollars that you’re likely paying now. This further increases the savings.
- No Monthly Payments – Own your solar system outright and maximize savings from day one
- Avoid Interest Costs – Lower the total cost of your solar investment
2. Full Ownership
The homeowner has complete ownership of the solar energy system right from day 1. Since no interest or monthly payments are involved, the homeowner gains from day 1. Additionally, an asset gets added to the property, which further boosts the property’s value. Since no loan agreement is involved, if you want to sell your home in the future, you can do so without any problem.
- Full Ownership & Increased Home Value – Gain an asset that boosts property value with no loan restrictions
- Immediate Financial Benefits – Start saving from day one with no interest or monthly payments
3. Shorter Payback Period
Since no interest payments are involved, you recoup the investment into the solar energy system much sooner. With interest payments involved, the breakeven can take 7 to 8 years, but you can break even at least a couple of years earlier if you purchase the solar energy system outright.
- Faster Break-Even – Own your system outright and break even in as little as 5-6 years instead of 7-8
- Higher Long-Term Savings – Enjoy decades of free electricity after breaking even
4. Complete Availability of Tax Incentives
Every applicable incentive and tax rebate is available to the homeowner who purchases a solar energy system outright. Not only that since the financing company isn’t involved, the amount of paperwork needed to avail these incentives and tax rebates is much lower.
- Maximized Incentives – Get all available tax rebates with less paperwork
- Simplified Process – Less paperwork means a faster and easier way to claim your savings
5. Higher Property Value
According to Fannie Mae, homes with solar energy systems command at least a 3% premium when sold. According to Zillow, the average home value in states like California is $773263, which means a 3% premium results in a gain of around $21,000. In addition, electricity cost savings, tax incentives, and rebates can help homeowners save a significant amount of money just by installing a solar energy system, especially when they make an outright cash purchase.
- Higher Home Value – Solar can increase your home’s value by at least 3%, adding around $21,000 in equity
- Attractive to Buyers – Homes with solar can sell faster and at a premium
6. Protection from Electricity Price Increases
According to Lawrence Berkeley National Laboratory, over 10 years from 2014 to 2023, electricity prices have consistently risen by 2.5% per year on a nominal basis. The prices during and after COVID-19 rose at a faster pace of 4.8% annually. Over 10 years, it adds up to around $10,000 for an average homeowner. However, when you buy a solar system outright, you are protected from all utility price increases.
Additionally, you need not worry about varying interest rates, related to financing options since no interest component is involved.
- Protection from Rising Costs – Avoid annual utility rate hikes and save up to $10,000 over 10 years
- Stable Energy Expenses – No more unpredictable electricity bills
7. Easy to calculate the True Benefit
Calculating the true benefit of a solar energy system is relatively simple when you’re purchasing the energy system outright. You just need to note the total cost and consistently subtract the monthly electricity bill savings compared to your earlier bill. That will let you know when you break even on the solar energy system.
Comparison of Cash Purchase vs. Financing vs. Leasing
Below, we have compared the 3 purchasing options to help you understand why a cash purchase is the most beneficial option.
| Sr. No. | Feature | Cash Purchase | Financing | Leasing |
|---|---|---|---|---|
| 1. | Ownership | Immediate & Full | After Loan Ends | No |
| 2. | Monthly Payments | None | Yes | Lower Monthly Payments |
| 3. | Interest Charges | None | Applicable | Applicable |
| 4. | Tax Incentives | Accessible | Applicable | Partial Access |
| 5. | ROI Timeline | 5 years or lesser | 7 to 8 years | Breakeven from Month 1 but minimal savings |
| 6. | Lifetime Savings | Maximum | Moderate | Less |
ROI Timeline
Cash purchase of a solar energy system provides an excellent ROI and the shortest breakeven period.
To begin with, you get the benefit of a 30% Federal Tax Credit, which cuts down the cost of the system significantly. Secondly, an average home has annual electricity bills of around $3,500 or even higher in some cases. However, this is increasing at 3-5% annually, depending on where you live.
Combining all these factors, it’s easy to understand how purchasing a solar energy system on cash can help you break even in 5 to 6 years. However, the breakeven can happen sooner depending on a few factors we will cover below.
- 30% Federal Tax Credit – Significantly reduce upfront costs.
- Fastest Break-Even – Recover your investment in just 5-6 years.
- Protection from Rising Utility Costs – Avoid 3-5% annual rate hikes.
Factors Affecting ROI Timeline
A few factors determine how soon you break even on the solar energy system.
1. Utilization of Local Rebates & Incentives
While most homeowners know about the 30% Federal Tax Credit, not all are aware of state and local incentives and rebates. That’s why they often miss out on those.
But don’t worry! Current Home has years of experience helping our customers acquire these incentives and rebates. These incentives allows for a faster break even timeline.
Additionally, we help our customers complete the documentation for net metering to start selling power back to the grid, which reduces their bills close to $0.
- Beyond the 30% Tax Credit – We help you claim state and local incentives.
- Seamless Net Metering Setup – Sell excess power and lower your bill to nearly $0
2. Efficient Solar Energy System Design
A solar energy system isn’t just about installing a few panels and a battery. We understand this and, therefore, design customized solar energy systems for our customers after considering their energy needs and available space. Such a design boosts electricity generation and minimizes underproduction.
- Tailored System Design – Built to match your energy needs and space
- No One-Size-Fits-All Approach – Every system is customized for peak performance.
3. Integration of Battery Storage
Integrating an efficient battery system can help maximize the efficiency of the solar energy system and break even faster. That’s why we use Powerwall by Tesla and other providers to help our customers store energy, which boosts their return.
Battery storage also prevents the loss of power during any emergencies and power outages.
- Stay Powered During Outages – Keep essential appliances running when the grid goes down
- Maximize Solar Savings – Store extra energy and use it at night or during peak rates
4. Energy Efficient Home Improvements
Lastly, it’s equally important to minimize the wastage of energy in your home by using LED lighting, keeping it well insulated, and using energy-efficient appliances. We try to guide our customers
in this regard.
All in all, we help all our customers extract maximum value from their solar energy systems.
Start Saving on Home Solar Panels Today!
Go solar today & start saving on electricity costs. Contact us today to make the switch.
GET A QUOTEFAQs on Cash Purchase
Wrapping it up
So, purchasing it on cash is the best option if you want to switch to solar seamlessly and enjoy maximum Return on Investment. Submit your details using our Get a Quote! Page, and we will help you make the switch.
Sources
https://www.fanniemae.com/media/28696/display
