Is Leasing Solar Panels Worth It

A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company.

Is leasing solar panels worth it. 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. Leasing solar panels for your home is not a good idea from a financial perspective. Plus solar leases could impact any future home or landscaping improvements you want to make on your home if it could potentially hinder the productivity of the solar panels.

If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option. Power purchase agreements ppas work much like solar leases but instead of renting the system you agree to pay a set price. You receive free electricity for the life of the solar energy system usually 25 to 30 years. 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.

If you sign a solar lease or solar ppa the tax credits and other financial incentives belong to the owner of the system not you. Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment. Here s why you might want to lease solar panels instead of buying or financing them. 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.

Some companies also offer power purchase agreements or ppas. With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. 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. 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. You can expect 10 30 savings over the cost of your utility electricity bill. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. With a solar lease you do not own the solar panel system on your property.

We simply do not recommend it. 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. Disadvantages of leasing solar panels.