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May 9, 2026Solar Loans — The Pitfalls Nobody Warns You About
May 9, 2026Three ways to finance solar — three very different outcomes. Jon breaks down exactly what each option means for your wallet over 25 years.
Cash Purchase
Best financial outcome. You own the system, you get all the savings, you get the SRECs, and you get the home value increase. Payback typically 7–8 years in NJ, after which electricity is essentially free for 15+ more years. Not everyone has $25,000–$35,000 available.
Solar Loan
You own the system from day one. You get SRECs, full savings, and home value benefits. Monthly loan payments (typically $120–$200/month for a NJ system) are often lower than the electric bill they replace. Loan paid off in 10–12 years, then free electricity. Best option for most homeowners who don’t pay cash.
Solar Lease
The leasing company owns the panels. They collect SRECs. Your payment typically escalates 2–3% per year. No home value increase from owned solar. Home sale complications. You get cheaper electricity, not solar ownership. Rarely the best financial outcome for NJ homeowners.
Power Purchase Agreement (PPA)
Similar to a lease — you pay per kWh produced rather than a fixed monthly fee. Company owns the system, keeps SRECs. Can make sense if your credit doesn’t qualify for a solar loan, but compare the 25-year cost carefully.
The NJ SREC Factor
NJ SRECs are worth $500–$1,500/year. With a loan or cash purchase, that income is yours. With a lease or PPA, it goes to the company. Over 10 years that’s $5,000–$15,000 transferred away from you. The financing structure matters enormously in NJ.
The Simple Rule
If you can qualify for a solar loan, own the system. The loan is almost always a better financial outcome than a lease or PPA in New Jersey.
Find Out What Solar Saves You in Your Home
Every home is different — roof angle, usage, utility rate, and local incentives all affect your numbers. Enter your monthly electric bill below for a free savings estimate. Jon reviews every submission personally and follows up within 2 hours.
Which Financing Option Is Right for Your NJ Home?
Jon walks through the exact numbers — loan vs lease vs PPA — for your specific home, including NJ SREC income projections under each scenario. For most NJ homeowners, the answer is clear once you see the 25-year comparison. Book a free call to run the numbers.
