Buying vs. Leasing Solar Panels


| 5/9/2017 11:19:00 AM


Tags: Bobbi Peterson, Pennsylvania, solar power,

Bobbi PetersonAdding solar panels to your house or business is a wonderful way to go green and reduce dependence on grid power. But you still have some tough decisions ahead of you. One of the most important ones is whether you should buy or lease the solar panels themselves. Each method has pros and cons that require careful consideration.

Leasing Your Panels

When you lease your solar panels, you don’t have to deal with the responsibility that comes with ownership. Typically, the solar company will install them for you, and they’ll be responsible for maintenance. Although you’ll have to pay them a monthly fee as part of this agreement, on the surface it seems like a better option than paying for panels outright.

This isn’t to say that you won’t save money. You most certainly will, though it won’t be all that much. When you lease your panels, the company gets any tax benefits you would have received. On top of that, they very well could raise your rates after an initial period.

One thing you’ll have to be extremely careful about is the length of the lease versus the time you plan to spend in your current home. If you want to move, you’ll either have to buy out your lease at a price set by the company, or the new buyers will have to agree to take it over. Although solar is attractive to hopeful homeowners, the loss of control through the lease is a highly off-putting factor.

Buying Your Panels

When you buy your solar panels outright, you have to pay the costs upfront plus figure out who will do the installation and maintenance. However, you get to keep all the federal and state incentives that would have gone to the leasing company. This includes the government’s 30 percent purchase cover and whatever state and local grants, rebates, and subsidies you qualify for.

Depending on where you live, you may even be able to generate some additional cash through the panels. In some areas, you can get Solar Renewable Energy Certificates (SRECs) through the EPA. You get one SREC for every megawatt-hour of electricity you generate. You can then sell this certificate, helping to mitigate the cost of the panels and generating a profit after you’ve fully paid for them.




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