Buy Or Lease Solar Panels

The tradeoff of this is long term savings potential and cost consistency.

Buy or lease solar panels.

It usually costs 15 000 to 20 000 after tax credits and can reduce your electricity bill by 70 to 100 percent depending on the size and. 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. The solar panels become the property of the purchaser after the funds are transferred. Solar loans are typically fixed while solar leases increase at a predetermined rate of 1 to 3 percent annually.

If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. Another appeal of solar leases is the lack of responsibility for system maintenance. Buying your solar electric system outright is best. Leasing solar panels can appeal to people who want no upfront cost.

The main practical distinction between buying and leasing a solar pv system is in ownership. If you don t have the money to buy solar panels up front farrell says you can borrow it. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan.