Do you want to harness renewable energy but aren’t sure how?
The final cost of solar panels will vary depending on whether you decide to buy or lease them. Leasing is an alternative to purchasing solar panels.
HOW DOES LEASING SOLAR PANELS FLOW?
Solar panel leases, similar to renting a house and a car for solar energy production, are financial agreements requiring you to pay a monthly fee. The monthly payment includes any maintenance or installation.
LEASING VS. BUILDING SOLAR PANELS
It is essential to understand the differences between buying and leasing solar panels and the potential benefits.
Leasing is an option if you do not have enough cash or do not want to make the financial commitment to buying solar panels. You don’t own the equipment when you lease solar panels. The leasing of solar panels is similar to leasing a car. Your panels do not become an asset.
It is important to remember that solar panel leasing can be a 20-year commitment. However, this time frame varies between states and leasing companies.
You can still save money on your electricity bills if you lease solar panels instead of purchasing them. However, the amount you spend on the lease will determine how much savings you get.
The control of your rooftop is another aspect of leasing solar panel. Before you sign the agreement, ensure that you verify the design and size of the system. You could end up with more panels or face the street, which can change the exterior appearance of your house or company.
SELLING OR BUYING A HOME WITH LEASED SOLAR PANELS
Incentives and rebates for solar panels are common. This is a great benefit but potential buyers may not be interested if the panels are enclosed in a lease agreement. These agreements could last up to 20 years.
The agreement may make it difficult or impossible for the panels to be removed. They may also need to be more transferable to new owners.
Leasing solar panels can add an additional layer of complexity to real estate transactions.
Be sure to carefully review the terms and conditions of any agreement you sign if you are a potential buyer of a home that has leased solar panels. Ask questions like:
- Is the agreement transferable
- Can I buy the equipment outright?
- How do I remove the solar panels from my home?
REMOVAL OF LEASED SOLAR PANELS
Selling a home with a solar panel lease agreement can be difficult. First, your panels may not be transferable to your new house. You may also have buyers who are hesitant about removing the panels.
Talk to your company to discuss the best options for removing the leased panels. Consider a buyout option. This is most likely to be around $20,000.
You may also have to pay fees to the company you lease from for taking them down. They also get the tax credits as well as the incentives that leasing doesn’t offer. They rely on your solar panels to keep them running.
HOW MUCH DOES IT COST TO LASE SOLAR PANELS SOLAR PANELS LEASE COST
Leases typically last 20 years. You shouldn’t expect the rate to remain the same every year. In reality, most lease agreements allow for an increase in payment of 3.9% per calendar year for 15 years.
Leasing can be more expensive than your electricity bill without solar panels over time. The choice of green electricity is more important than the return on your investment when you lease.
QUIZ: WHO SHOULD LAKE SOLAR PANELS
Should you lease your panels? If you are looking to make renewable energy, leasing is the best option.
If you are afraid of maintaining or fixing solar panels, leasing might be a good option. This alone may require more knowledge and investment.
You may not be eligible for solar panels tax incentives depending on your situation. It may be worth leasing rather than making a significant financial commitment to something you won’t benefit tax-wise.
Leasing solar panels: The pros and cons
PROS OF LEASING SOLAR PANELS
Leasing solar panels is easy to get into. There are very few upfront costs, such as a down payment. You are not responsible for the upkeep and maintenance of your panels. This could add on average $400 to your annual maintenance plan.
Solar panels can also reduce your electricity bill to increase the financial benefits of leasing. This allows you to save money in extreme climates where the A/C is required to run all year, or for heating your home in the winter.
Power production guarantees are also included in lease agreements. If your panels aren’t producing as much energy, your monthly lease payments will be reduced.
Leasing solar panels offers many benefits beyond the financial. It is possible to produce more green energy and reduce pollution.
CONSIDERATIONS OF LEASING SOLAR PANELS
Leasing has many financial benefits, but it also has long-term financial consequences.
The first is that you do not own the solar panel system. It is neither an asset nor does it increase the value of your property. This option does not provide a way to calculate the return on investment.
You cannot also claim tax incentives for equipment that you don’t own. These are claimed by the leasor.
The best thing about solar panels is the lack of monthly payments. If you are looking to lower your monthly electricity bill, this is an option. The lease agreement basically swaps your monthly electricity bill for the monthly installment.
It may be worthwhile to consider a solar system purchase if you only want financial benefits from solar panels.
Leasing solar panels can also lead to the loss of control over your rooftop. They want to maximize their investment in your property so they are very concerned about curb appeal, the amount of panels and general appearance.
CONTACT FREEDOM SOLARPOWER TO START YOUR SOLAR-POWER JOURNEY
Freedom Solar doesn’t offer any leasing options for solar panels. However, we will work with you to purchase a SunPower unit from our company. We will help you create a financing plan that suits your budget and doesn’t require any upfront money. To make your investment in solar panels worthwhile, we offer a 0% interest and a 25 year warranty plan.