Does Leasing Solar Panels Save Money

An affordable new way to get solar panels.

Does leasing solar panels save money.

If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. Advantages of leasing solar panels. We simply do not recommend it. Lease or what s known as a solar power purchase agreement.

Leasing solar panels for your home is not a good idea from a financial perspective. From 2015 through 2017 homeowners in the united states installed 6 909 gigawatts worth of rooftop solar panels which was double the amount added in the previous 10 years 5. Solar leasing and ppas account for over half of this total and there are some excellent reasons why solar leasing has. The main practical distinction between buying and leasing a solar pv system is in ownership.

Solar leasing and ppas allow homeowners to go solar without the upfront costs of installing a system which can range up to 30 000. Solar leasing is a lot like a lease on a car. How to save money going solar. Most of them involve hiring a good contractor to design and install a system on your roof and unfortunately most of them involve spending a lot of money up front on the system and installation.

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 re interested in solar energy you aren t alone. But the true cost of solar panels and whether they ll help you save money depends on a few key factors. Technicians from solar source install solar panels on a house in dunedin florida.

The benefits of a solar lease. On average installation and the system together can run between 15 000 and 25 000. You make monthly payments for the panels and are entitled to all the electricity they produce. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.

In most cases you ll save much more money in the long run by exploring other financing options like an fha title 1 loan or a traditional loan from your personal bank. Make sure your homeowners insurance company will insure solar panels. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. Pay little or nothing and save hundreds of dollars per year on average.

There are many ways to add solar panels to your home. Most lease providers provide the option to buy the panels at the end of the lease term at a discounted price.