Is Leasing Solar Panels A Good Idea

Does this mean solar leasing is a bad idea.

Is leasing solar panels a good idea. In conclusion leasing solar panels makes solar energy available to more people than ever. Department of energy s lawrence berkeley. You receive free electricity for the life of the solar energy system usually 25 to 30 years. 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.

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. Disadvantages of leasing solar panels. The disadvantages of solar leasing include.

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. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. Solar installations can come at a pretty high price.

Another benefit of owning versus leasing solar panels is the premium it offers on the value of your home. 1 solar leasing companies get to claim the tax credits rebates and srecs. 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. 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.

The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. According to new research sponsored by the u s. 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.

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. 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.