Leasing Solar Panels Worth It

Disadvantages of leasing solar panels.

Leasing solar panels worth it.

In return you get all of the solar energy the panels produce which cuts down your electric bill. 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. The disadvantages of solar leasing include. Leasing solar panels works similarly to leasing a car.

A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. Here s why you might want to lease solar panels instead of buying or financing them. In fact one analysis shows buying a solar system can save you as much as 60 thousand dollars over 20 years. You receive free electricity for the life of the solar energy system usually 25 to 30 years.

You ve saved energy lowered your low utility bills and felt the undeniable pleasure of sharing these perks when the topic of solar came up with anyone who would listen. Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment. Some companies also offer power purchase agreements or ppas. You pay a fixed monthly payment to a solar installer but you do not own the solar panels.

Leasing solar panels for your home is not a good idea from a financial perspective. With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option. A solar lease gave you the opportunity to run on sun without having to pay the 11 000 14 000 that it costs to install panels in one fell swoop.

We simply do not recommend it. 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. Power purchase agreements ppas work much like solar leases but instead of renting the system you agree to pay a set price. 1 solar leasing companies get to claim the tax credits rebates and srecs.

Solar lease contracts are usually for 20 to 25 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.