There are broadly five solar buying and solar financing options that you can opt for while going solar:
- Buying a Solar PV system under CAPEX Model: You purchase the Solar PV system and pay the 100% cost of the solar system upfront. This allows you to get the best deal as you would be saving any additional cost such as interest rates.
- Buying a Solar System under a Deferred Payment Agreement(DPA): You purchase the solar system at a downpayment of 25~30% and defer the remaining capital cost of the system in easy instalments at lucrative interest rates. The benefits of buying solar under DPA is that it makes going solar affordable and flexible. With MYSUN DPA you also get an option to make your own payment plan and keep your monthly instalment less than or equal to your monthly power bills. This will help your solar system pay for itself.
- Buying a Solar System by opting for a Solar Loan: You purchase a Solar system and opt for a solar loan to pay the 100% cost of the solar system to your solar installer. Under this model of buying solar, though you buy the solar system at the CAPEX cost you are required to pay off the loan at an agreed-upon interest rate.
- Buying only solar power under RESCO/ Power Purchase Agreement(PPA) Model: You do not purchase the solar system but only the solar energy produced by the solar system. A solar power developer owns the Solar PV system set up on your rooftop/ land. You only pay for the generated electricity at a pre-agreed tariff. This usually requires a long-term buying commitment and guarantees from your side and entails a lengthy credit appraisal process. This mode of buying solar is usually available to only commercial and industrial power consumers.
- Equipment leasing: An equipment leasing company will lease the Solar PV system to you and will charge you a fixed monthly/ periodic fee. This also requires long term commitments and guarantees from buyers. However, equipment leasing is not widely available as of now. Click here for more information.