You can lease solar panels to put in your home. But you need to understand the pros and cons of leasing solar panels. This article will help you decide whether leasing is right for your needs. Besides, this option is convenient for many people.
Leases at a cost
There are many things to think about when leasing solar panels. The monthly payment is often cheaper than buying the panels outright. Leasing your solar panels does have its disadvantages. These include the inability to qualify for any rebates, incentives, or federal subsidies. Lease companies also make money on your monthly repayments, and get any incentives from solar panels.
If you are looking to sell your home, solar panels will make it less valuable. The price of solar panels can lower the value and make it difficult to sell your home if the buyer doesn't wish to lease it. Buyers have concerns about solar leasing, which may lead to a reduction in the cost of the lease.
Leasing has many benefits
Leasing solar panels can be advantageous for those who don't have the capital to purchase the system outright. This type of arrangement offers no upfront costs, and it also requires no maintenance, unlike purchasing. Lease companies often offer special deals to first-time customers. A solar company will handle the installation, so you can enjoy the benefits of not having to worry about it. Leasing them may mean that you lose some control over the aesthetics and location of the panels.
The main benefit of leasing solar panels, is the fact that you can reduce your energy bills over time. Depending on the size, your monthly utility bill may be cut anywhere from 15% to 40%. Lease solar panels can allow you to monetize solar energy in the SREC markets.
There are downsides to leasing
There are many options available to you if you are considering leasing solar panels for your home. Solar leasing comes with a few drawbacks. Leasing solar panels requires a long-term commitment. This means that the panels may not be available for sale when your house is sold. Solar leases could also hinder your ability to refinance.
Another disadvantage to solar leasing, is that you are not eligible for tax incentives. Because the solar company owns panels, you will not be eligible to receive the 26% federal sun tax credit. Utility rates will be higher than traditional loans and you will have to pay them. A tax professional can help you determine whether you may be eligible for a higher credit if your plan is to lease solar panels.
Whether leasing is a good option for you
Leasing solar panels for your house from a solar leasing company can prove to be risky. A solar lease company is looking to make a profit and will try to tie you up in long-term contracts. If you decide to sell your home, you may need to pay the remaining lease payment or find a buyer willing and able to take over the lease. Potential buyers will be attracted to your home if you lower the price. Additionally, leasing solar panels can affect your credit score. Leasing solar panels will make it difficult to obtain a mortgage in the future.
Another advantage of leasing solar panels is that you don't have to pay for them up front. A leasing agency will also handle your federal tax payments and maintenance. This is especially advantageous for those with poor credit scores or people who do not qualify for federal tax incentives. Financing solar panels is an option if you are able to get a loan. You'll save money and increase the value of you home.