Lease Or Buy Solar Panels

The cost of energy has increased progressively since 1969.

Lease or buy solar panels.

The main difference between buying and leasing a solar system is who owns the system. If you do buy you become the owner of your home s main power source. If you use a lease the leasing company borrows the money and pays the interest and principal overtime with your lease payments. As you consider whether you should lease or buy solar panels you need to determine your financial scenario.

As a lessee you are a mere user of your solar energy system. Solar energy is cheaper now than ever before across much of the world and the variety of financing options make it an increasingly attractive investment for homeowners seeking to slash energy costs. There are pros and cons to each model. With a solar lease or solar power purchase agreement solar ppa you don t have to pay any upfront costs to install solar panels on your roof.

Your current financial scenario will largely impact your ability to go solar. Energy information administration estimates that the average increase over this time span has been 3 year over year. Buying allows you to take advantage of all applicable solar panel incentives be the owner and potential seller of all the energy you produce and achieve much greater savings in the long run. When you buy solar panels whether it be with cash or through a solar loan you are the owner of the solar panels.

Many leases contain an. If you don t want to pay the up front cost associated with an outright purchase of a solar panel system then a lease may be a really great option for you but then in that case you would miss out on for instance the increased home value associated with adding solar panels. As with a car a solar lease can be thought of as a loan they are both contractual payments over a period of time to use an asset. Before committing to buying or leasing a solar panel system you should consider the pros and cons of each option and use online tools to fully evaluate your options.

Buy decision for a solar system is similar to that of a car. 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. If you don t buy the company you lease from remains the owner of the solar panel system and therefore receives the long term financial benefits. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan.

If you use a loan you are borrowing money and paying interest and principal overtime. The main practical distinction between buying and leasing a solar pv system is in ownership. Instead a solar company installs and owns the solar system. If you have the financial ability to buy your solar panels outright or secure financing for a solar loan the payoff will be much greater than a solar lease.

Solar leasing agreements allow you to go solar without the expensive upfront costs of installing a system. Leasing solar panels from a solar provider merely give you benefits as a renter of the energy system.