Solar Financing Options in Florida: Loans, Leases and PPAs Compared

Solar Financing Options in Florida: Loans, Leases and PPAs Compared

Most Florida homeowners can go solar with zero money down. The right financing option depends on your tax situation, credit profile, and financial goals.

Option 1: Cash Purchase — Best ROI

Paying cash for your solar system delivers the highest long-term return on investment. For a $15,000 system, the net cost after the 30% tax credit is approximately $10,500. With $2,400 in annual FPL savings, the payback period is approximately 4.4 years — and the system continues producing for 25 or more years.

Option 2: Solar Loan — Best for Most Homeowners

Solar-specific loans allow you to own your system with no money down, making monthly payments that are typically less than your current FPL bill. Loan terms range from 5 to 25 years, with interest rates from 3.99% to 7.99%. You still claim the full 30% federal tax credit, which you can use to pay down the loan principal in year one.

Option 3: Solar Lease — Low Risk, Lower Savings

With a solar lease, you pay a fixed monthly fee to use the solar system on your roof but you do not own it. The leasing company claims the tax credit. Your monthly lease payment is typically lower than your current FPL bill, but you capture only 10-30% of the savings compared to ownership.

Option 4: Power Purchase Agreement

A PPA is similar to a lease, but instead of paying a fixed monthly fee, you pay per kilowatt-hour of electricity your system produces — typically at a rate 10-20% below your current FPL rate. PPAs involve no ownership, no tax credit, and 20-25 year contracts.

Option 5: PACE Financing — No Credit Check Required

Property Assessed Clean Energy (PACE) financing allows homeowners to finance solar through their property tax bill with no credit check required. PACE loans are repaid over 5-25 years as part of your annual property tax payment.

Get a Free Financing Comparison

Palm Beach Solar will run the numbers on all financing options for your specific situation. Contact us at (561) 220-7753 for a free consultation.