Is Leasing Solar Panels Worth It

In fact one analysis shows buying a solar system can save you as much as 60 thousand dollars over 20 years.

Is leasing solar panels worth it.

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. Plus solar leases could impact any future home or landscaping improvements you want to make on your home if it could potentially hinder the productivity of the solar panels. Disadvantages of leasing solar panels. If you sign a solar lease or solar ppa the tax credits and other financial incentives belong to the owner of the system not you.

With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. People who lease their solar systems save far less than those who buy them outright or with a loan they also miss out on federal tax benefits and any local incentives. Leasing solar panels for your home is not a good idea from a financial perspective. Some companies also offer power purchase agreements or ppas.

But lease your system and your savings can drop to 20 000 dollars over the same 20. Your lease payments will still be lower than your old electric bill but that does mean less savings for you. You receive free electricity for the life of the solar energy system usually 25 to 30 years. 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.

Here s why you might want to lease solar panels instead of buying or financing them. The disadvantages of solar leasing include. Power purchase agreements ppas work much like solar leases but instead of renting the system you agree to pay a set price. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value.

If you have enough to make a purchase in cash you ll save more than with any other option but even with a 0 down solar loan your savings could still be in the tens of thousands. You can expect 10 30 savings over the cost of your utility electricity bill. We simply do not recommend it. 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.

With a solar lease you do not own the solar panel system on your property. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment.