Cash, loan or power purchase plan: ways to pay for upgrades

01Cash: the simplest on paper

Paying cash means you own the equipment from day one. There is no monthly payment, no interest and no loan paperwork. Your total cost is the price on the contract.

The trade-off is the money leaving your savings now. Think about what you would want left in reserve for emergencies once the project is done. If paying cash would drain that cushion, phasing the work can help. It pays to start with the whole house so the first upgrades are the ones that matter most.

Even with cash, do not hand over the full amount up front. Consumer advice from the FTC is to hold the final payment until the work is finished and you are satisfied with it.

02Home loan: spread the cost

A loan lets you pay over time. You own the equipment, and you make payments to the lender. Static's home loan option runs through lending partners. Like any financing a contractor offers, ours included, it is worth comparing with a loan from your own bank or credit union.

Look past the monthly payment. The CFPB advises comparing more than the monthly number when you shop, since home equity loans can carry upfront fees and costs. The APR folds in many of those fees, but the CFPB also cautions against picking a loan on APR alone.

Also know whether the loan is secured by your house. With a home equity loan, the CFPB notes, the lender could foreclose if you cannot repay. That is a serious commitment, so make sure the payment is one you can carry.

03Power purchase plan: $0 down

With a power purchase plan, you do not buy the equipment. You pay for the power the system delivers. That is how our $0-down option works, and it can suit you if you would rather not take on a loan or spend savings.

Because it is a long-term agreement, read it closely. Questions worth asking about any agreement like this:

• Who owns, insures and services the equipment?
• How long is the term, and how is the price set over that time?
• What happens if you sell the house?
• What are your choices when the term ends?

We lay out every option side by side with your current bill, so you can compare them on the same page.

04Read before you sign

Whatever you choose, the paperwork is what protects you. The FTC's home improvement advice covers the basics:

• Get a written contract with the scope, materials, start and finish dates, and any promises made out loud.
• Fill in or cross out every blank before you sign.
• Do not sign loan papers you have not read, and do not let anyone pressure you into signing.
• Shop around and compare financing before you agree to any offer.

If you sign at your kitchen table, the FTC's Cooling-Off Rule generally gives you until midnight of the third business day to cancel many sales made in your home. The seller should tell you about that right at the time of sale and give you the cancellation forms.

05Choosing what fits

A rough way to think about it:

• Cash fits if you have the savings and want no interest and full ownership.
• A loan fits if you want to own the equipment but spread the cost, and the payment sits comfortably in your budget.
• A power purchase plan fits if you want $0 down and would rather pay for power than own the equipment.

Whichever you pick, plan the house first. Sealing the attic before sizing the AC, or fixing the roof before anything goes on top of it, keeps you from paying for capacity you will not need. The same logic is why battery storage comes after the house is efficient.

You get a written plan and a real price, with each way to pay laid out next to what you pay for power now. When you are ready to see real numbers for your home, book your free inspection.