Is Leasing Solar Panels Worth It

Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment.

Is leasing solar panels worth it.

The disadvantages of solar leasing include. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. We simply do not recommend 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.

Leasing solar panels for your home is not a good idea from a financial perspective. If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. 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.

With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. You can expect 10 30 savings over the cost of your utility electricity bill. Disadvantages of leasing solar panels. With a solar lease you do not own the solar panel system on your property.

Here s why you might want to lease solar panels instead of buying or financing them. Your lease payments will still be lower than your old electric bill but that does mean less savings for you. 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.

You receive free electricity for the life of the solar energy system usually 25 to 30 years. Solar leasing may be more quick and convenient than purchasing solar panels but there are many reasons why buying a solar energy system might be a more sensible choice. Power purchase agreements ppas work much like solar leases but instead of renting the system you agree to pay a set price. 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.

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