Finance Options

Determining The Right Finance Option

Ownership Options

Cash Purchase:

• When you choose the cash option, you are electing to pay for your entire system upfront. With this option, you will not have any monthly solar bills to pay; only the monthly connect charges to your utility company.

• To calculate your return on investment (ROI), divide your average monthly electric bill by the net cost of your system (after tax credits have been applied) to determine the total number of months to break even. Keep in mind that this is a conservative estimate and does not account for potential utility rate increases.

• You will own the system and be eligible for the Federal Tax Credit

• No monthly solar bills

• Enjoy long-term savings

• The typical return on investment (ROI) is roughly 6-10 years

• Requires an upfront investment to purchase the system

Solar Financing:

• When you choose to finance your system, you have the option to select from a range of different finance terms and lengths. Many of our customers choose the longest terms available in order to maximize their day 1 savings.

• It's important to note that all of our finance options require $0 down payment and can be prepaid at any time without incurring penalties. The monthly solar bill amount will vary based on the size of your system and the finance term you choose.

• This monthly solar bill will replace your monthly electric bill. However, please keep in mind that depending on your utility company, you may still be required to pay them a monthly amount.

• No upfront cost or installation costs required

• You will own the system and be eligible for the Federal Tax Credit

• Switch your electric bill for a solar bill

• Enjoy a predictable solar bill instead of a fluctuating and increasing electric bill

• Once the system is paid off, no more payments will be required

• Interest payments can increase the overall cost

• Adding debt to your credit report may have negative impacts on your credit rating

Non-Ownership Options

Solar Lease:

• By leasing your system, you can protect yourself from rising rates imposed by utility companies. With $0 down, you can have a system installed and pay a fixed monthly amount. It's important to note that leasing and Non-Ownership Options do not make you eligible for the Federal Tax Credit. The financier is the one who can claim this credit.

• One of the major advantages of our Non-Ownership Options is that the financiers will also have it’s own warranties and guarantees for your system.

• No upfront cost

• Have a fixed monthly bill

• Maintenance, monitoring, and production are all guaranteed.

• You do not own the system

• You do not qualify for tax incentives

• Long-term savings might be lower compared to ownership options

Power Purchase Agreement (PPA):

• When choosing a PPA option, similar to the lease option, you protect yourself from increasing rates imposed by utility companies. You are currently in a "Power Purchase Agreement" with your utility company, which means you agree to buy power from them at a fixed rate and the utility can raise your rate any amount at any time. The Solar PPA operates in the same way, except that the rate you pay will be lower than the utility rate, and it can only increase by a fixed low amount per year.

• Just like our other Non-Ownership Options, the financiers will also have it’s own warranties and guarantees for your system.

• There is no upfront cost

• Pay less per kWh than what the utility company charges

• You only pay for the energy produced

• Maintenance, monitoring, and production are all guaranteed.

• You do not own the system

• You do not qualify for tax incentives

• Long-term savings might be lower compared to ownership options

Federal Tax Credit

FAQ

1. How much is the tax credit? As of August 2022, the tax credit is 30% of the total project cost.

2. How long is the tax credit available? The tax credit is available until 2032 at 30%, after which it is scheduled to gradually decrease to 26% in 2033 and 22% in 2034.

3. Am I guaranteed the tax credit? No, Better Earth cannot promise the tax credit to customers unless. We cannot legally guarantee that they will be able to claim the full credit. It’s best to speak to your tax profession regarding your ability to claim the tax credit.

4. How does someone claim their tax credit? To claim the tax credit, customers should use a copy of their installation agreement as a receipt of purchase. If they file their own taxes, they can find the tax form on the IRS website.

5. Can co-borrowers claim tax credits? Yes, co-borrowers can claim tax credits as long as they have the taxable liability. The co-borrower can generally claim the tax credit if the home where the solar was installed is their primary residence.

6. Can the tax credit be claimed over multiple years? Yes, as long as the tax credit is still available, a customer can claim it over multiple years if necessary.

7. Does the tax credit apply to Battery Storage? Yes, the tax credit can be applied to the costs of installing battery storage systems.

8. Does the tax credit apply to the costs of a reroof? Different tax advisors may have different opinions on this matter, so it is recommended to have the customer check with their tax advisor.

9. Can a homeowner claim the tax credit more than once? Homeowners can claim the tax credit for separate solar systems or additions, but only once for the same solar array. The tax credit is limited to the primary residence, so if they move and install a new system, they can claim the credit again.

10. Can a homeowner claim the tax credit for multiple homes? The tax credit is intended for the primary residence of where the customer lives. If they have a vacation home, they can claim the tax credit for solar on that home based on the portion of the year they occupy it.

11. Can the tax credit be claimed twice on the same home if a different homeowner gets qualified for the second system purchase? Yes, the tax credit is tied to the individual and not specifically to the home. A new homeowner adding a new system can also claim a tax credit for the new installation.

Cash Payment Process

• $1,000 Deposit: Better Earth collects a deposit when you sign up to go solar.

• 90% of the Total Balance is Due at Installation: When your solar installation is complete, you will be billed for 90% of the project balance.

• Final 10% Balance is Due After Inspection Approval: The last 10% is due after your system has been inspected and approved by your local building department.

FAQ

• We accept ACH (virtual checking account) payments from a checking or savings account.

1. Select "ACH / Checking Account" as your payment option.

2. Choose "Solar Installation Down Payment."

3. Next, you will select your banking provider with Plaid. Plaid is the most trusted, industry-leading virtual ACH payment processor.

4. Sign in to your online banking provider and select the account from which you would like to make your payment. Better Earth does not have to the information entered in the Plaid application.

5. Once done, click "Submit."

• If your bank isn't listed or if you're uncomfortable using Plaid, you can request an invoice.

• Click the link at the bottom of the page to access the "Better Earth Invoice Request Form." Once completed, we will send you an invoice via email.

• Please note that it may take up to 24 business hours to receive the invoice.

• Yes, the $1,000 down payment is refundable. If you need a refund, please email us at ap@betterearth.solar.

• If you're paying in cash for both your solar and roof, you will make payments for both.

• The payment schedule will be the same as for a solar-only project: $1,000 down, 90% of the remaining amount due at installation, and the final 10% due after inspection approval.

• If you cannot find the invoice in your email, please call us or message us using the chat feature on our website to get connected with a customer service specialist who can assist with resending the invoice.