Thankfully, home solar systems have gotten more affordable with every passing year, enabling an increasing number of homeowners across the country to access cleaner, greener energy, and benefit from a reduction in their utility bills. Some might even say that we’re in the midst of an energy revolution. However, even if you want to invest in a solar system and have the funds to do so, you might be wondering whether to buy the panels, or rent them.
Buying and renting solar panels: what’s the difference?
Customers can choose to rent a solar system from a local company, and pay a monthly fee for the privilege instead of a much larger upfront fee for the installation and purchase of solar panels.
The rental market for solar panels is typically an appealing one, with potential customers being sold the fact that all they’ll need to do is pay a monthly fee for their panels; no upfront investment in installation required. However, while this prospect may indeed be an appealing one at first glance, it isn’t always as cut and dried as it may seem.
To help you decide whether to rent or buy your solar panels, here are a few things to think about:
What are the advantages of renting solar panels instead of buying them?
Below are two of the primary reasons why homeowners opt to rent their panels:
When renting, you’ll sign a contract that requires you to pay a monthly fee for the panels, and the rental company will install the system on your roof.
While this might not be true for every solar rental company, the majority of them will clean and maintain the panels as part of the rental agreement.
What are the advantages of buying solar panels instead of renting them?
Below are 4 of the primary reasons why homeowners opt to buy their panels:
A lot of solar system providers offer financing programs in which you can have a solar system installed without putting any money down.
Although with financing, you are still paying for your solar system, the rates are typically highly competitive and there is usually an interest-free period.
While incentives and tax credits may vary from state to state, they can be significant, and help you save a lot of money on your investment.
You might be paying more to own your own solar panels, but when they typically last between 25 and 30 years, it becomes easier to justify that initial investment. Don’t forget that many reputable solar solution providers will offer lengthy warranties and around the clock customer support, too.
What is the main difference between owning and renting solar panels?
When you own your own solar system, you aren’t tied to a contract that likely doesn’t go in your favor, and may be subject to change. Often, rental agreements are for a 20-year period, and over time, the provider makes more money out of you than they would had they sold you a system.
If you can find a sound solar system provider in your area who will offer you a great price for your system, along with a good warranty and plenty of customer support, the option of renting becomes much less of a promising prospect, certainly from a financial perspective.
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