Leasing Solar Panels Worth It

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.

Leasing solar panels worth it.

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. 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. A solar lease gave you the opportunity to run on sun without having to pay the 11 000 14 000 that it costs to install panels in one fell swoop. With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate.

Disadvantages of leasing solar panels. Leasing solar panels works similarly to leasing a car. Here s why you might want to lease solar panels instead of buying or financing them. If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option.

People who lease their solar systems save far less than those who buy them outright or with a loan they also miss out on federal tax benefits and any local incentives. Power purchase agreements ppas work much like solar leases but instead of renting the system you agree to pay a set price. We simply do not recommend it. You receive free electricity for the life of the solar energy system usually 25 to 30 years.

You pay a fixed monthly payment to a solar installer but you do not own the solar panels. Some companies also offer power purchase agreements or ppas. 1 solar leasing companies get to claim the tax credits rebates and srecs. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company.

In return you get all of the solar energy the panels produce which cuts down your electric bill. You ve saved energy lowered your low utility bills and felt the undeniable pleasure of sharing these perks when the topic of solar came up with anyone who would listen. Solar lease contracts are usually for 20 to 25 years. Leasing solar panels for your home is not a good idea from a financial perspective.

In fact one analysis shows buying a solar system can save you as much as 60 thousand dollars over 20 years. But lease your system and your savings can drop to 20 000 dollars over the same 20.