Purchase Vs Lease Solar Panels

Buy decision for a solar system is similar to that of a car.

Purchase vs lease solar panels.

Whether you lease or buy solar panels you will save money on your energy bill. The solar panels become the property of the purchaser after the funds are transferred. We will discuss the pros and cons in this article but first we must address one fact. The great solar panel debate.

You may be tempted to lease rather than buy but consumer reports says leasing solar panels is not a bright idea. 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. 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. One of the biggest disadvantages of solar leases is that you don t get to take advantage of.

The only way to receive a 30 federal tax credit on the cost of your solar energy system is if you buy your panels. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. But the startup costs can still be daunting. If you sign a solar lease or ppa you are renting the solar panel system from the solar company that owns it if you install solar panels with a solar loan you are the system owner which comes with additional financial benefits and responsibilities the question of whether you want to take out a loan or lease your solar panels is dependent on your preferences needs and financial goals.

Buying solar panels long term savings. Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. At the end of the contract the lessee can renew buy the panels outright often for a discounted price or have the panels removed. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.

If you don t buy the company you lease from remains the owner of the solar panel system and therefore receives the long term financial benefits. However when you buy. To lease or to buy. Tax credits and incentives.

The benefits of a solar lease solar leasing and ppas allow homeowners to go solar without the upfront costs of installing a system which can range up to 30 000. The main practical distinction between buying and leasing a solar pv system is in ownership. Leasing solar panels from a solar provider merely give you benefits as a renter of the energy system.