Do you want to harness renewable energy but aren’t sure how?
The final cost of solar panels will vary depending on whether you buy or lease them. Leasing is an alternative to purchasing solar panels.
HOW DOES LEASING SOLAR PANELS FLOW?
Solar panel leases, which are similar to renting a house and a car for solar energy production, are financial agreements that require you to pay a monthly fee. The monthly payment includes any maintenance or installation.
LEASING VS. BUILDING SOLAR PANELS
It is important to understand the differences between buying and leasing solar panels, as well as the potential benefits.
Leasing is an option if you don’t have enough cash or don’t want to make the financial commitment of buying solar panels. You don’t own the equipment when you lease solar panels. The leasing of solar panels is similar to leasing a car. Your panels do not become an asset.
It is important to remember that solar panel leasing can be a 20-year commitment. However, this timeframe can vary between states and leasing companies.
You can still save money on your electricity bills if you lease solar panels instead of purchasing them. However, the amount you spend on the lease will determine how much savings you get.
The control of your rooftop is another aspect of leasing solar panel. Before you sign the agreement, ensure that you verify the design and size of the system. You could end up with more panels or face the street, which can change the exterior appearance of your house or company.
BUYING OR SELLING A HOUSE WITH LEASED SOLAR PANELS
Solar panels are eligible for rebates or incentives . This is a great benefit but potential buyers may not be interested if the panels are enclosed in a lease agreement. These agreements could last up to 20 years.
The agreement may make it difficult or impossible for the panels to be removed. They may also not be transferable easily to new owners.
Leasing solar panels can add an additional layer of complexity to real estate transactions.
Be sure to carefully review the terms and conditions of any agreement you sign if you are a potential buyer of a home that has leased solar panels. Ask questions like:
- Is the agreement transferable
- Can I buy the equipment outright?
- How do I remove the solar panels from my home?
REMOVAL OF LEASED SOLAR PANELS
It can be difficult to sell a home with a solar panel lease agreement. First, your panels may not be transferable to your new house. You may also have buyers who are hesitant about removing the panels.
Talk to your company to discuss the best options for removing the leased panels. You might also consider a buyout option. This is most likely to be around $20,000.
You may also have to pay fees to the company you lease from for taking them down. They also get the tax credits as well as the incentives that leasing doesn’t offer. They rely on your solar panels to keep them running.
WHAT IS THE PRICE TO LOSE SOLAR PANELS?
Leases typically last 20 years. You shouldn’t expect the rate to remain the same every year. In reality, most lease agreements allow for an increase in payment of 3.9% per calendar year for 15 years.
Leasing can be more expensive than your electricity bill without solar panels over time. The choice of green electricity is more important than the return on your investment when you lease.
QUIZ: WHO SHOULD LAKE SOLAR PANELS?
Should you lease your panels? If you are looking to make renewable energy, leasing is the best option.
If you are afraid of maintaining and repairing solar panels, leasing might be a good option. This alone may require more knowledge and investment.
You may not be eligible for solar panels tax incentives depending on your situation. It may be worth leasing rather than making a significant financial commitment to something you won’t benefit tax-wise.