Lease Or Purchase Solar Panels

The difference between buying and leasing.

Lease or purchase solar panels.

Solar lease and solar ppa overview. It s easy and affordable. But when it comes to installing a solar array on your home you may be wondering whether it s better to buy or lease the system. When you use cash or a solar loan to buy solar panels you re.

With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. Leasing is a contractual agreement between a company providing the solar installation the lessor to the company or individual acquiring the solar installation the lessee based on regular payments of lease rentals. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. When you purchase a system outright you can eliminate your entire electric bill and you don t have to worry about any other monthly payments.

As with a car a solar lease can be thought of as a loan they are both contractual payments over a period of time to use an asset. With a solar lease or power purchase agreement ppa you don t have to pay the high upfront cost of solar panels equipment and installation. The main practical distinction between buying and leasing a solar pv system is in ownership. Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment.

When you lease a solar system or enter into a power purchase agreement ppa you do not own the system and are simply renting it from the installer. Buy decision for a solar system is similar to that of a car. Here s why you might want to lease solar panels instead of buying or financing them. Many solar installers advertise solar leases or power purchase agreements solar ppas as an easy way to reduce your electricity bill.

Buying your solar electric system outright is best. Let this serve as a useful guide to help you evaluate the best fit for your specific situation. Instead of paying for a solar system you pay a fixed monthly amount for the electricity the solar panels generate. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.

If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option. It usually costs 15 000 to 20 000 after tax credits and can reduce your electricity bill by 70 to 100 percent depending on the size and. The biggest downside to a solar lease is that your long term savings are substantially lower when leasing solar panels as opposed to buying. Ownership is the number one distinction between leasing and purchasing a solar photovoltaic pv system.

The solar panels become the property of the purchaser after the funds are transferred.