Is Leasing Solar Panels A Good Idea

Disadvantages of leasing solar panels.

Is leasing solar panels a good idea.

Another benefit of owning versus leasing solar panels is the premium it offers on the value of your home. According to new research sponsored by the u s. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. While buying solar panels gives you the best return on investment not everyone has the cash on hand to cover the upfront costs of going solar.

It sounds good in theory but in practice the contracts for solar leases and power purchase agreements can and do contain some nasty surprises that consumers often don t know about until it s too late. 1 solar leasing companies get to claim the tax credits rebates and srecs. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. In a lease you pay to rent the solar power system typically for about 20 percent less than you were paying for electricity explained freedom forever solar ceo brett bouchy.

You can save between 40 percent and 70 percent on electricity costs over the lifetime of your solar panel system depending on your property and the incentives in your state. If you have enough to make a purchase in cash you ll save more than with any other option but even with a 0 down solar loan your savings could still be in the tens of thousands. And while buying is still the better long term investment leasing solar panels is a good alternative to buying for many people and in many circumstances. Pay little or nothing and save hundreds of dollars per year on average.

Luckily homeowners can take advantage of financing options like solar leases and solar loans to help them afford making the switch to solar. Solar leasing may be more quick and convenient than purchasing solar panels but there are many reasons why buying a solar energy system might be a more sensible choice. Absolutely not it just means that you ll have to do your own research to make sure you re getting the best available deal on solar you ll still want to do this even after any rules are put in place. Department of energy s lawrence berkeley.

In conclusion leasing solar panels makes solar energy available to more people than ever. Whether you lease or buy solar panels are a good overall idea. You receive free electricity for the life of the solar energy system usually 25 to 30 years. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing.

Some companies also offer power purchase agreements or ppas. The contracts for these leases and ppas are always long and can be difficult to deciper.