Financing Alternatives

While the federal tax credit represents a substantial portion of the solar system cost, homeowners have choices for financing the remaining amount.

PSE&G Solar Loan:

Receive a check from PSE&G in exchange for signing over your Solar Renewable Energy Certificates to them for 10 years.  Actual amount will be determined by PSE&G at time of loan application.

Finance almost the entire cost of system after tax credit and rebates with the PSE&G Solar Loan program (40% – 60% of the system cost).

This unique 10-year loan is repaid with Solar Renewable Energy Credits (SRECs) your system will generate rather than through monthly payments.

A “floor” price for SRECs is set at the time of the loan and minimizes SREC market risk while allowing a chance to benefit from the SREC upside.

Actual loan amount will be determined by PSE&G at the time of loan application submission. (For more information, go to http://www.pseg.com/customer/solar/)

Self-Financing:

With interest rates at very low levels, some homeowners are choosing home equity loans to pay for their systems and taking the interest on the loan as a tax deduction.

Some homeowners are also cashing in on CDs or using other sources of funds to pay for their systems, since SREC revenue and annual electric savings may provide a return greater than what they are currently earning on their CD or other investment.

The payback period is longer than the PSE&G solar loan option, but you retain the SREC revenue stream rather than surrendering the SRECs to PSE&G for the 10 year life of the loan.