Leasing Solar Panels
We suggest owning solar panels, however, read below and find out what a lease is all about.
Leasing solar panels is often considered to be inferior to owning solar panels, because of the manifold benefits of owning solar panels. However, there is a reason why so many people choose to lease solar panels, and we are going to discuss some of them so you can choose which way is right for you.
Leasing solar panels is much cheaper up front.
You can get solar panels on your home for as little as zero down from some companies, which makes solar panels a feasible option for people who otherwise could not afford them. When you lease solar panels, the leasing company takes care of maintenance and upgrades. You will have up to date panels in perfect repair with no hassle on your part. There are different payment plans for leasing solar panels. You will have to make sure to get a payment plan that is less than your electric bill, but if you do, you will be saving money every month.
Cons of leasing Solar Panels: you will be paying every month, whereas if you owned you wouldn’t be paying electricity or a least. If your lease payment is more than your electricity bill, you will be losing money. If you sell your house, you may have to pay off your lease all at once if your home buyers do not want to take over the lease. These are just some of the benefits and costs to weigh when deciding whether to lease or buy solar panels.
Leasing Solar Panels in Sacramento, CA?
One of the big debates in the world of solar panels is the question of whether buying or leasing solar panels is the better option. There are people who come down on the side of leasing, and there are people who come down on the side of buying. We are going to give you some of the pros and cons of buying and leasing solar panels so you can make an informed decision for your own Sacramento, CA home or business.
High Up-Front Cost in Buying Solar Panels
Buying solar panels has a high up-front cost, and you are financially responsible for the total cost of your apparatus. You may be able to get a loan for your solar panels, and you will almost certainly be able to get rebates or credits, as well as carbon offset credits that you can sell to local businesses. All these things can help to lower the price of your solar panels when you buy them, but the fact remains that you will have to front the cost of your panels. When you lease solar panels, on the other hand, you get them for approximately the same price you already pay per month on your electricity bills.
This makes leasing solar panels more affordable for people who do not have the cash to lay out for a solar panel array. Many times you can even lease solar panels for no money down. The company will take care of maintenance, so that you do not have to worry about anything.
On the other hand, there are several drawbacks to leasing solar panels.
Financially, you are not likely to be much better off; in fact, you may be worse off if your payments turn out to be higher than the amount you were used to paying for electricity. Lease terms often come with variable payments and this can cause your rates to rise. Also, you will not be eligible for any of the tax incentives or carbon credits – these go to the owner of the solar panels, while you are stuck paying the full bill.
Often you will end up paying much more than the cash value of the solar panels by the end of the lease, and you would have saved money if you had bought instead. Furthermore, leased solar panels can make it difficult to sell your house, because buyers have to be willing to take on the lease or else you have to be ready to pay out the remainder of the money you owe on the lease in order to be released from it. Monetarily, therefore, it makes much more sense to buy solar panels, even if you have to take out a loan to do it, rather than leasing them.