We frequently get inquiries regarding leasing vs. buying solar panels for your home in addition to our customers’ options for the residential solar panel financing customers.
We give a free, no-commitment energy review for your home to enable you to see where you may profit from solar panels.
You will also get data on renting and buying choices, the utilities you could work with, and how much money the solar panel would save you.
Hidden Residential Solar Lease Shortcomings Discovered
After years of reviewing residential solar leases, many people found that they just don’t make sense. They often end up paying more, saving less, and experiencing problems when it comes time to move or renew their lease.
But the questions are:
- Will it be your case? We have in-depth details of the pros and cons of each option.
- Does it sound like we recommend that homeowners choose to buy their solar panel system? Not at all,
Throughout this article, you will get complete insights into the pros and cons of leasing and buying solar panels.
- Buying Your Solar Panels: Pros and Cons
- Leasing Solar Panels Pros and Cons
- Final Thought: Leasing Vs. Buying Solar Panels For Your Home
Buying Your Solar Panels: Pros and Cons
Owning your properties and getting its energy fully generated is incredible. You will not pay for any electricity bill for years, even off-grid.
Advantages of Buying Your Solar Panels
The freedom and savings that the solar panel will provide you are unbeatable. Here are some of the benefits of having a solar system:
- The annual energy increases will remain in the past because the solar system will provide you with all the energy power you need.
- You will have full contact with your saving, benefits, and tax credits.
- The equipment and its size will be by your liking.
- From the first month, you will get various options for saving your money.
- You will be able to transfer or even sell your solar system if you desire to.
- You are the one to decide what you will do with the energy produced by your solar system.
This info from Computerworld gives a glimpse of how you can benefit from falling equipment costs and the improved financing options from buying solar panels.
Disadvantages of Buying Your Solar Panels
- Costly – A solar power system for small families(2-3 persons) can cost $15,000 to $30,000 before rebates and incentives. Cash rebates can reduce the total cost by up to 50 percent, but it is still a huge amount compared to the leasing solar panels costs.
- In most states, you also need to prepare your permit to install the solar panels for your house.
- Maintenance cost – Another disadvantage for your solar system. Solar panels are waterproof, but there are some maintenance costs that you need to spend on (Up to $400 for cleaning and inspection for a one-story home) – Source.
- Spend more on moving – If you desire to sell or transfer your home or property, it will have many disadvantages because moving with many solar panels is not the experience you would love. It will be your trouble. You need to spend more on the moving cost for your panels.
Leasing Solar Panels Pros and Cons
Everything has its advantages and disadvantages. The same thing applies to solar panels and solar energy when it comes to the cost.
We will tell you the pros and cons of leasing solar panels in the next two sections. Will it be your best choice, or should you not even think about it?
Residential Solar Leasing Advantages to Know
- They are primarily interested in using electricity generated from renewable resources rather than maximizing the financial benefits of installing a solar panel system.
- Want to avoid the responsibility of maintenance/or repairs for a solar panel system.
- Are ineligible for federal or state investment tax credits resulting from your investment in a solar panel system;
- And/or Do not want to wait until the following year to receive tax credits’ financial benefits.
Residential Solar Leasing Disadvantages to Know
In MD and PA having a leased solar panel comes with charges that are not beneficial to the customer. Take a deeper look at options for buying a solar panel:
30% of the federal tax credit goes to the company you are leasing the solar panels from.
The same goes for the state-specific rebates and, they end up to the owner of the panels, not to you.
Because the solar panels can be removed< since you don’t own them, they don’t add value to your home.
Final Thought: Leasing Vs. Buying Solar Panels For Your Home
I really hope that I have answered your question: Leasing vs. buying solar panels for your home.
Having your solar panels will give you more reliability and ownership. Spend once free electricity for years.
Leasing solar panels will cost you much less than buying initially, but it will come with many terms and conditions.
To conclude, if you are looking for a long-term solar energy option and have your money without any financial commitment. Go for the buying option. Otherwise, short-term leasing is a good choice. After a few years, you can have your solar system.