First, let's just acknowledge the fact that you are likely well to do if you are even asking this question!

Not many people can afford to pay for solar with cash, and it's certainly a sign of financial strength. Good on you!

But whether you SHOULD, that's the question.

Should you pay cash for solar?

From a financial perspective, you need to weigh the benefits and returns of going solar with the other places you could invest that cash.

If you buy solar at a reasonable price (like with DIY Solar!), you can get a return on your money that is often better than the stock market!

That's because the money you invest in solar will significantly reduce or eliminate your power bill for 30+ years. On top of that, you won't have to pay higher prices as inflation brings up the cost of energy with time.

Not only that, your return has very little risk of ending poorly, something that cannot be said of the stock market.

However, if you are getting solar from a door knocking solar sales bro, you're likely overpaying and cash is not going to get you a great return.

Other options for buying solar

The other path to finance your solar is to get a solar loan.

However, buyers beware! Solar loans often include very high "dealer fees" which are extra fees they add in for originating your solar loan. Usually an extra 30% to 50% of your total cost!

There is also the option of doing a HELOC or a personal loan which won't usually include such crazy origination fees.

Conclusion

So, what should you choose?

Well, it really depends on whether you think you can apply your money to a more attractive investment than the alternative.

With DIY Solar, most of our customers get a 13% annual return on their solar investment.

If you feel you can beat this with other investments, then don't pay cash! If you can't, then go the cash route.