Is Solar Panel Leasing A Good Idea

Problems with solar leasing.

Is solar panel leasing a good idea.

This video reviews the benefits of buying and leasing solar panels. The contracts for these leases and ppas are always long and can be difficult to deciper. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. While leasing a solar panel system may seem like a great idea it can create an awkward situation when you decide to sell your home.

Department of energy s lawrence berkeley. Pay little or nothing and save hundreds of dollars per year on average. In most cases you ll save much more money in the long run by exploring other financing options like an fha title 1 loan or a traditional loan from your personal bank. Purchasing a solar panel system with cash or financing a purchase with a solar loan is your best option when you want to maximize the financial benefits of installing a solar panel system rather than solely benefitting from the system s environmental benefits.

Does this mean solar leasing is a bad idea. 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. As states continue to emphasize solar see california s solar panel mandate leasing could be an affordable option for many residents. Solar leasing does have some drawbacks potential lessees should pay attention to.

A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years. Another benefit of owning versus leasing solar panels is the premium it offers on the value of your home. Going solar is a great investment for your home and purchasing a new property with solar already installed is a surefire way to save money in the long run. For one lessees won t qualify for tax incentives.

Both homeowners and potential homebuyers can benefit from solar energy. According to new research sponsored by the u s. Breaking your lease with a solar panel company will usually result in you being charged the full bill for the 15 years of usage the homeowner agreed to. Installing a solar farm on farmland could cause the land to lose its current agricultural use value status since the land is no longer used exclusively for agriculture.