Is Solar Panel Leasing A Good Idea

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.

Is solar panel leasing a good idea. Pay little or nothing and save hundreds of dollars per year on average. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. This video reviews the benefits of buying and leasing solar panels. Department of energy s lawrence berkeley.

According to new research sponsored by the u s. Another benefit of owning versus leasing solar panels is the premium it offers on the value of your home. Leasing solar panels for your home is not a good idea from a financial perspective. A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years.

Solar leasing does have some drawbacks potential lessees should pay attention to. We simply do not recommend it. For one lessees won t qualify for tax incentives. As states continue to emphasize solar see california s solar panel mandate leasing could be an affordable option for many residents.

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. The contracts for these leases and ppas are always long and can be difficult to deciper. 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. 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.

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. Problems with solar leasing. Does this mean solar leasing is a bad idea. 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.