How do Palmetto customers finance solar?
69% choose a Palmetto Energy Plan (lease or PPA)
25% finance with a solar loan and no money down
6% pay cash upfront
Some self-finance through a home equity loan or personal line of credit
Palmetto Energy Plan (lease or PPA)
A Palmetto Energy Plan lets you go solar with $0 upfront. Palmetto owns, installs, and maintains the system while you benefit from the electricity it produces. There are two types:
PPA (Power Purchase Agreement): you pay a low fixed rate per kilowatt-hour your system generates
Solar lease: you pay a fixed monthly amount, the same for 25 years
Which one is available depends on your state. From your perspective, they work similarly. Every Palmetto Energy Plan includes:
$0 upfront costs
Guaranteed solar performance
No maintenance responsibilities
A Palmetto Energy Plan is a good fit if you:
Want immediate savings with no upfront cost
Don't want to own, monitor, or maintain a system
Don't have enough tax liability to benefit from solar tax credits
A note on tax credits: Because Palmetto owns the system, you won't be eligible to claim the Residential Clean Energy Credit or other solar incentives. Those follow ownership. If tax credits are a priority, a cash purchase or loan may be a better fit.
Solar loan*
Solar loans are designed specifically for home solar systems, with terms averaging 20–30 years to match the lifespan of the equipment. Monthly payments are lower and spread out, giving you flexibility to pay it off on your schedule.
Most solar loans assume eligibility for the 30% Residential Clean Energy Credit and apply that value toward your loan balance in or before month 18 to keep your monthly payment fixed. In month 19, the loan automatically reamortizes based on the remaining principal.
Pay more than ~30% of your total loan amount by month 18 → your remaining payments go down
Pay less → your monthly payment may increase after month 19
Not everyone qualifies for the tax credit. Check with your tax advisor before assuming it applies to you.
Cash purchase
A cash purchase is the fastest path to savings. You own the system outright from day one, with no loan payment eating into your electricity savings.
All cash purchases at Palmetto include a 2.9% dealer fee and follow a three-part payment schedule:
Payment 1 — due at signing (CA, NV, OH) or 0–5 days after contract approval (all other states)
Payment 2 — due after permits and approvals are received, before installation
Payment 3 — due when your system is activated
Additional payments may apply if site improvements are needed.
Cash buyers may be eligible for the Residential Clean Energy Credit, which lets you deduct 30% of your system and installation costs from your tax liability. If the credit exceeds your liability for that year, the remainder rolls over. Eligibility varies — talk to your tax advisor.
How do the options compare?
Cash vs. Loan vs. Palmetto Energy Plan
Cash vs. Loan
Alternative financing
Home equity line of credit
A home equity loan or line of credit (sometimes called a second mortgage) lets you borrow against the equity in your home, which is the difference between what you owe on your mortgage and your home's current value. For example, if you owe $200,000 on a home worth $300,000, you have $100,000 in equity to borrow against.
These are secured loans, meaning the lender places a lien on your property. Secured loans generally carry lower interest rates than unsecured loans, but there's a significant trade-off: if you fail to make payments, the lender has the right to repossess your home. Most solar loans are unsecured, meaning the loan is tied to the solar system, not your home, which is an important distinction. Confirm the terms with your lender before proceeding.
Personal loan or line of credit
A personal loan or line of credit, such as a home improvement loan, is another option for customers who don't qualify for a solar loan, prefer not to use their home as collateral, or simply want more flexibility. Interest rates will vary depending on your financial situation and lender.
These loans typically have shorter repayment terms than solar loans, which average 20–30 years, so monthly payments may be higher depending on your term length.
Speak with a financial consultant
There are many options when it comes to financing your solar energy system. Whether you want to pay with cash, loan, or another option, your Palmetto Sales Representative or our Palmetto Support team can help you break down the options so you can make an informed decision.
*See Palmetto Truth in Lending Act Disclosures for pricing and payment details.