Publish Date: August 24th, 2026
When you’re ready to purchase a home solar system (with or without battery backup), there are many financing options to help Colorado homeowners meet their goals. The four general ways to purchase solar plus battery backup are: a cash purchase, a prepaid energy service agreement (ESA), a loan, or a power purchase agreement (PPA).
Don’t worry if it all feels a bit complicated. We’ll explain each below. And if you want to talk through the options with someone, our team is non-commissioned with the goal to help you get answers to your questions without any pushy sales pitch. You can reach out here for a free quote.
Regardless of which pathway you choose, when you go solar you are investing in a clean energy source for your home that can help lower or stabilize what you pay for electricity each month, provide backup power when the grid is down, and provide peace of mind for decades to come.
Key Takeaways for Cash, Solar ESAs, Loan, and Solar PPAs
- What are the benefits of paying for solar with cash or a loan? Paying for your solar plus battery system with cash or a loan allows you to own your system outright, insulate you from rising electricity rates, and make a positive impact on the environment.
- What are the benefits of choosing the Namaste Solar Impact ESA? The Prepaid Energy Services Agreement is a way to indirectly benefit from existing commercial tax credits, which allows you to save up to 30% off your system. You pay a single upfront payment for five years and have the option at year six years to purchase your system or continue the ESA.
- What are the benefits of choosing a solar PPA? The solar PPA offers homeowners a way to go solar with $0 upfront costs. You’ll make a fixed monthly payment for the duration of the PPA.
- No matter which option you choose, you’re getting the benefits of solar. Solar helps lower your monthly bills, offers a clean source of energy that benefits our environment, and can be an investment with ROI for many homeowners.
Paying For Your Solar System with Cash or a Loan
The traditional way to get solar plus storage is to buy your system outright with cash or a loan. Some homeowners have the capital to make the upfront investment in solar, and others choose to finance their solar. Namaste Solar offers $0-down loan options or homeowners can secure their own loans. Let’s explore the pros and cons of choosing this path when installing solar plus storage.
Pros of Cash or a Loan
- You own your system from day one: With both cash and loan options, you own your solar system outright. A solar system is an asset that some homeowners prefer to own themselves.
- You are insulated from rising energy prices: With energy prices constantly on the rise, homeowners who go solar with cash or a loan lock in lower energy rates on day one.
- Your system can pay for itself: Your monthly solar savings add up, and your system often pays for itself (sometimes twice over) in its 30+ year lifespan.
- You’ll be getting true energy independence: Since these homeowners own their system outright, they enjoy the energy independence that comes from getting electricity from solar on your roof rather than energy from the utility company. Plus, battery storage customers have the potential to store the energy they produce and use when the sun isn’t shining, or when energy is the most expensive, upping their independence even more.
- If you choose a loan, you can go solar with $0 down: Some loan terms offer $0 down option, making solar accessible for a wider range of financial situations and Colorado homeowners.
Cons of Cash or a Loan
- Regular system maintenance and servicing are your responsibility: With ownership comes responsibility to maintain and service your system yourself. While you can call on a trusted installer to be your partner, the cost is yours. When you work with a reputable installer, a workmanship warranty is included with your install. And the quality equipment that they install comes with manufacturer warranties.
- If you finance, you will have monthly payments: Monthly payments for a solar system paid for with a loan are often lower than your current electricity bill.
Paying with cash or a loan is a great way to own your system from day one, and purchasing your system allows you to maximize your lifetime solar savings from day one.
Not All Solar PPAs or Solar ESAs Are Created Equal
The sunset of the Federal Investment Tax Credit (ITC) means that homeowners can no longer claim the 30% tax credit, but commercial entities still can. Many solar leases, ESAs, and PPAs are being offered to allow commercial entities to claim this 30% credit and then pass the savings to you, and many of these offerings are disadvantageous or even predatory to homeowners.
But at Namaste Solar, we’re always working to bring offerings to our customers that are built with integrity and will benefit them the most. With this in mind, Namaste Solar is now offering the Namaste Solar Impact Energy Services Agreement (ESA).
The Namaste Solar Impact Energy Services Agreement (ESA)
The Namaste Solar Impact ESA is designed so homeowners can save up to 30% when the commercial solar and battery tax incentives are realized and passed on to you.
When you choose the Namaste Solar Impact ESA, you are responsible for an upfront prepayment that covers your first five years of electricity costs. At year six, you have the opportunity to purchase your system at a minimal fair market value while eliminating future ESA payments. If you’re not ready to buy in year six, you can continue the ESA with low, fixed monthly payments and a guaranteed 0% annual escalator.
Pros of Namaste Solar’s Impact ESA
- You receive a production guarantee: Our Impact ESA comes with a guaranteed production output ensuring that your system is powering your life for years to come.
- Homeowners can save up to 30% compared to a traditional purchase: Depending on system size, these savings can amount to $10,000+ off of your home solar or solar plus battery system.
- You’ll have the opportunity to purchase your system after year five: In year six, Impact ESA customers have the option to purchase your system at a fair market value, eliminating future ESA payments, and continuing to enjoy solar savings.
- Maintenance and service of your system is included in your terms: With the Impact ESA, Namaste Solar is responsible for the basic maintenance and service of your solar system at no cost to you.
Cons of Namaste Solar’s Impact ESA
- You aren’t the owner of the system in the beginning: Some customers prefer to own their system while others appreciate a third-party owner who is responsible for maintenance. It all depends on your goals and preferences.
- You’ll have monthly payments after year five: If you choose to forgo or postpone ownership, you’ll have low, fixed monthly payments with a guaranteed 0% escalator to continue your ESA.
- Our Namaste Solar Impact ESA requires a prepayment: This option requires an upfront payment. You’ll then enjoy five years without payments.
A Solar Power Purchase Agreement (PPA) from LightReach by Palmetto
With a solar PPA, you’ll pay a discounted rate for the power your system produces, typically lower than your utility rate. These monthly payments are fixed and don’t change based on solar production or energy usage. Namaste Solar partnered with LightReach by Palmetto to offer this option; Namaste Solar installs the system while LightReach by Palmetto owns the system.
Pros of a Solar PPA
- You can go solar with no money down: Choosing to go solar with a LightReach by Palmetto PPA allows you to install a solar system on your roof with $0 down. For many homeowners, this makes solar accessible.
- You are insulated from rising electricity prices: When you choose a solar PPA, you’ll now enjoy paying a discounted rate for the electricity you produce from day one.
- Maintenance and service of your system is included in your terms: Our PPAs are owned by LightReach by Palmetto, and as the owner of the system, they’ll handle billing, monitoring, maintenance, and repairs after installation. This hands-off approach simplifies solar for some homeowners.
Cons of a Solar PPA
- Your solar system is owned and managed by a third-party company: This means you’ll be navigating questions about service, maintenance, and support between multiple organizations. While it’s possible for the homeowner to buy out a PPA, the product isn’t designed for this.
- PPAs come with a yearly escalator: A PPA comes with a yearly adder that increases your monthly payments each year. These escalators typically range from 1% to 2.99%.
We’ll Help You Decide Which Option Is Best for You
The options for financing solar have changed since the residential solar tax credit ended, and the right approach will depend on your goals, budget, and circumstances.
One thing that hasn’t changed? Our non-commissioned solar advisors will listen closely, help you understand the tradeoffs, and provide straightforward guidance based on what is best for you. Namaste Solar has built a reputation for low-pressure guidance and transparent information that puts the customer in the driver’s seat.
To take advantage of our educational approach, give us a call at 303-536-8920 or click the button below.
