Solar Lease: Leasing Solar Panels
You don't have to be an expert on energy policies to see that the U.S. electricity prices have been increasing every year. In 2014, the residential rate of electricity for Los Angeles households was 21.6 cents per kWh, and by all outlooks this trend is expected to continue in perpetuity1.
However, you can save yourself from fluctuating fossil fuel prices as solar power has become affordable enough to compete with grid electricity in most states. In fact, with solar financing plans such as a solar lease, you can get a solar power system at zero down, and start saving money from day one.
Leasing solar panels is a great way to do away with the high upfront cost of solar energy. Here, you essentially lease a solar power system from a company, which operates and maintains it. You then pay off the lease every month at a low fixed amount, which can be lower what you pay your utility for electricity.
A solar lease offers various advantages:
- You can get a system ideal for your home, while locking in your electricity rate for the next 10 to 20 years,
- Pay nothing or little upfront to install and use the solar power the system generates,
- Stability of fixed monthly payments, allowing you to budget better, and
- The solar lease is easily transferrable to a new homeowner.
Unlike a Solar Power Purchase Agreement (PPA) where you pay per kWh of electricity your solar power system generates, a lease only requires you to pay an agreed fixed monthly amount. You can lease for zero down or prepay part of your solar lease in advance to lower you monthly payments.
The lease can either be flat, or may appreciate incrementally every year. Even if it does increase over time, your monthly payment can remain lower than what your utility would have charged (considering increasing utility rates), allowing you to enjoy electricity from the solar panels at a continuously reduced rate. A solar lease can also pass to a new homeowner seamlessly.
When does a solar lease make sense?
The only way to tell whether you should lease a solar power system or purchase one is by getting a solar evaluation quote, as there are many variables that need to be taken into account. Broadly speaking, leasing solar panels make sense for people who cannot afford the high upfront cost of purchasing a solar power system.
You should also know that leasing a solar power system in California allows you to enjoy all the state sponsored rebates, incentives and solar tax credits that the leasing company receives as they are passed along to you in the form of a lower monthly rate.
If you would like to know whether you should lease or buy a solar power system, then get a free quote by using our Solar Savings Calculator Tool. One of our qualified solar consultants will get in touch with you, and help you understand how much you can save by going solar.
- Rent Solar Panels
- Solar Financing Options
- Solar Panels: Buy or Lease?
- 5 Ways Going Solar Saves Money
- 9 Reasons to Go Solar
1Average Energy Prices in Los Angeles, http://www.bls.gov/regions/west/news-release/averageenergyprices_losangeles.htm
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.