Finance·India & USA
Solar Financing: Loans, Leases and PPAs Explained
Cash, loan, lease or PPA — the right financing choice can change your 25-year savings by tens of thousands.
Solar loans
You own the system and claim all tax credits. US rates currently run 6.99%–9.99% APR over 10–25 years. In India, green-energy loans from SBI, HDFC and Tata Capital run 8.5%–10.5% over 5–10 years.
Leases and PPAs (USA only)
A third party owns the system and you pay a fixed monthly lease or a per-kWh PPA rate. Zero upfront cost, but you forfeit the 30% federal tax credit and lifetime savings are smaller.
Cash purchase
Highest lifetime savings and shortest payback (4–6 years). Best if you have the capital and tax appetite to use the full ITC in year one.
Frequently asked
- What's the best way to finance solar panels?
- If you can afford it, cash. Otherwise a solar loan beats a lease because you keep the tax credit and own the asset.
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