Is Leasing Solar Panels Worth It

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.

Is leasing solar panels worth it.

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 is a financing option for residential solar panels where the homeowner leases panels from a solar company. 1 solar leasing companies get to claim the tax credits rebates and srecs. But lease your system and your savings can drop to 20 000 dollars over the same 20.

You receive free electricity for the life of the solar energy system usually 25 to 30 years. Some companies also offer power purchase agreements or ppas. Disadvantages of leasing solar panels. 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.

We simply do not recommend it. The disadvantages of solar leasing include. With a solar lease you do not own the solar panel system on your property. Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment.

Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. Power purchase agreements ppas work much like solar leases but instead of renting the system you agree to pay a set price. 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. 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.

Leasing solar panels for your home is not a good idea from a financial perspective. 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. Your lease payments will still be lower than your old electric bill but that does mean less savings for you. You can expect 10 30 savings over the cost of your utility electricity bill.

With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. In fact one analysis shows buying a solar system can save you as much as 60 thousand dollars over 20 years. 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.