Should You Buy or Lease Solar Panels?
To buy or lease solar panels, it is a common question. The solar lease versus buy debate can get quite tough to crack for homeowners. After all, both options have their respective advantages and disadvantages.
Buying a solar panel system outright is great option if you have cash, credit or can acquire a personal or home equity loan.
Buying solar panels offers:
- Access to all the state-sponsored rebates, incentives, 30% Solar Income Tax Credit, and Solar Renewable Energy Credits (SRECs), which can save you a lot of money over the life of the solar panels,
- No monthly payments for the solar, and
- A lock on long-term energy costs.
On the other hand, you can lease solar panels for little or even zero down, and since your lease repayment will most likely be less than what you pay to your power utility each month, you start saving money from the start.
Leasing solar panels offers:
- Minimal money upfront or zero down (PPA),
- A fixed monthly amount to company that owns and maintains your system, and
- The total of your lease payment plus remaining power bill could be less than your previous electric bill, depending on your energy usage.
Not to mention, the upkeep of the system becomes the company's responsibility in a lease. However, as you do not own the solar power system in a leasing agreement, the financial incentives get passed to the solar power company. These savings are ultimately passed through to the customer in the former of a lower rate (PPA), lease payment (Lease) or upfront cost (Pre-Paid lease).
Solar leasing is only available in 26 US states. Though, there are other solar financing methods that can help you go solar without a heavy upfront investment if you are living in a state where leasing is not offered.
There is no correct answer to the question, Should you buy or lease solar panels? The answer depends entirely on where you live, as well as what your energy and financial requirements are.
If you are interested in finding out whether you should buy or lease solar panels, then Verengo® Solar can help you out. Start by getting a free solar quote.
What Can You Save With Solar?
With no end in sight for soaring electricity rates, your switch to solar will secure affordable power for your home & family for years to come.