“Zero down solar” usually means you can get solar panels installed without paying an upfront cost. Instead of buying the system outright, you typically use one of three financing models: 1. Solar Loan You own the solar system, but a lender finances it. Upfront cost: $0 Monthly payment: Loan payment Electric bill: Reduced because you're generating some of your own power Tax credits and incentives: Usually go to you, the homeowner Ownership: You own the system once the loan is paid off This is often the most attractive zero-down option if you qualify for financing and want long-term savings. 2. Solar Lease A solar company owns the system and installs it on your roof. Upfront cost: $0 Monthly payment: Fixed lease payment Electric bill: Usually lower, but you still pay the utility for any grid power you use Tax credits and incentives: Go to the solar company Ownership: You never own the panels Leases can provide immediate savings, but they typically deliver less total financial benefit than owning. 3. Power Purchase Agreement (PPA) A solar company installs and owns the system. Upfront cost: $0 Monthly payment: Based on how much electricity the panels generate Electric bill: Reduced utility usage, but you pay the solar provider for the solar energy produced Tax credits and incentives: Go to the solar company Ownership: You do not own the system With a PPA, you're essentially buying solar electricity instead of leasing equipment. Example Suppose your electric bill is $180/month. With a zero-down solar loan: Loan payment: $120/month Remaining utility bill: $20/month Total: $140/month You save about $40/month from day one, although actual numbers vary widely based on your location, roof, utility rates, and financing terms. Things to Watch For Before signing, check: Interest rate and loan term Whether payments increase over time Estimated savings assumptions Early payoff penalties What happens if you sell your home Equipment warranties and maintenance responsibilities