According to studies, 55% of the world’s new renewable energy is now solar energy. Installing solar panels can be a great way to save money on your energy bill. It’s important to understand all of your options before making a decision.
Many people don’t realize that they have the option to lease solar panels, instead of buying them outright. While leasing might seem like the easier option, there are some things you should consider before making a decision.
But don’t worry! Keep reading for our complete buyer’s guide that shows you the pros and cons of solar lease vs buy.
Solar Lease Pros
Generally, no money down – Most solar leases require little or no money down when signing up. This makes going solar more affordable for many people.
Low monthly payments – Solar lease payments are often lower than your regular electricity bill, so you could see savings right away.
Maintenance and repairs included – With a solar lease, maintenance and repair costs are covered by the company you’re leasing from. This takes some of the hassles out of having solar panels installed.
Upgradeable – If you decide you want to upgrade your solar system at some point, most leases allow you to do so with little or no extra cost.
Solar Lease Cons
You are not the owner – When you lease solar panels, you are not the actual owner of the system. This means you can’t sell them or transfer them to another property if you move.
Higher electricity bills in the long run – While your solar lease payments may be lower than your regular electricity bill now, over time they will likely increase as the lease terms go on (usually 20 years). This could mean you’ll be paying more for electricity in the long run than if you had bought your solar panels outright.
Solar Buy Pros
You are the owner – When you buy solar panels, you are the actual owner of the system. This means you can do whatever you want with them. Including selling them or transferring them to another property if you move.
No monthly payments – Once your solar panels are paid off, you’ll have free electricity from then on (assuming the system is still functioning).
Maintenance and repairs not included – Unlike a solar lease, when you buy solar panels all maintenance and repair costs are your responsibility. This could mean more out-of-pocket expenses down the road, but it also gives you more control over your system.
Solar Buy Cons
Higher initial cost – Buying solar panels typically costs more upfront than leasing them. However, you can often recoup that money over time through lower electricity bills.
Longer payback period – It can take a while to break even on your investment when you buy them outright. This is because you are paying off the cost of the panels over time, as opposed to leasing where the monthly payments are generally lower.
Remember that if you’re looking to get solar panels, make sure they are installed by professionals like Blue Raven Solar.
Solar Lease VS Buy: Whats Best For You?
So, should you solar lease or buy? It depends on your specific situation. If you want panels installed for free and don’t mind someone else owning the equipment, then a solar lease may be the right choice for you. However, if you’re interested in tax breaks, rebates, or rather own the equipment yourself, buying solar panels is a better option.
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