While leasing solar panels for your home or business may have its advantages, they are far fewer than those associated with buying them outright. Below are just some of the reasons why you should consider buying your solar panels instead of leasing them:
When you lease, the company will claim your rebates and incentives
The federal solar tax credit (which is worth as much as 30% of the overall cost of the system) and other incentives cannot be claimed by you, since you don’t own the solar panels.
Your long terms savings will be significantly reduced
If you lease a solar panel system for your home or business, you’ll need to continue paying for it throughout its entire lifespan, never making any savings. Monthly lease payments can last for as long as 20 to 25 years, while the payback period of a solar system is typically as little as 6 to 10 years.Those who buy their panels, will ultimately see significant long-term savings thanks to reduced utility bills.
By leasing solar panels, your home won’t increase in value
It’s no secret that a home with solar panels that have been professionally installed, is typically worth more than a similar home without a solar array. However, if your home has leased solar panels on its roof, its value will not increase as the panels don’t belong to the home and the homeowner.
Doesn’t leasing make a solar panel installation more affordable?
While the initial cost of solar panels can be a little off-putting for many, there are plenty of opportunities for financing your purchase and possibly even getting solar panels for zero down. With a home equity loan, you may even be able to deduct the interest tax.
What about long-term costs?
This really depends on the warranty that comes with your solar system, so be sure to check what the installer and manufacturer are offering in terms of repairs and equipment replacements. Leasing may mean that any repairs are covered by the solar provider, but with a good warranty, maintenance is rarely an issue for those who purchase their panels upfront.
Who owns what?
When leasing solar panels, you will only have ownership rights over the energy supplied by the system, and not the panels themselves.
Leasing solar panels may be a viable option for many home and business owners interested in making the switch to solar, but rarely is it the most sensible from a long-term financial standpoint. Consider your own financial circumstances carefully before deciding to lease a solar system, and be sure to look at the long-term benefits associated with buying the panels yourself.
[addtoany]