Leasing solar panels for your home is an option. It is important to be aware of both the benefits and costs. If you read this article, you will be able decide if leasing the equipment is right for yourself. Besides, this option is convenient for many people.
Leasing fees
You need to take into account several factors when you are considering solar panel leases. The monthly payments can be much lower than purchasing them in full. There are some drawbacks to leasing solar panels. These include not being eligible for rebates or federal incentives. Leasing companies can make money from your monthly payments and receive incentives from the solar panel.
Your home's value will decrease, so you will have to pay less to get solar panels. The cost of solar panel installation will decrease the value your home and it may be more difficult to let it go if the buyer does not want it. Buyers may be concerned about solar leases, and they might lower the price to avoid them.
Benefits of leasing
For those who don’t have the funds to buy the solar panels, leasing them can be a good option. This arrangement has no upfront cost and doesn't require maintenance. Some leasing companies offer discounts for first-time customers. Leasing companies offer the added benefit of not having to worry too much about the installation. If you lease the panels, however, you might lose some control over their location and aesthetics.
Leasing solar panels has the advantage of reducing your monthly energy bills. Your monthly utility bill could be reduced by anywhere from 15% to 40% depending on how big your system is. Furthermore, leasing solar panels gives you the opportunity to monetize your solar power on the SREC Market.
There are downsides to leasing
If you are thinking of leasing solar panels to your home, then you aren't alone. There are several disadvantages to solar lease. Leasing solar panels requires a long-term commitment. This means that the panels may not be available for sale when your house is sold. Also, solar leases can prevent you from being able to refinance your home.
You don't have the option to claim tax incentives for solar leasing. The solar company will own the panels so you can't claim the 26% federal tax credit. Utility rates will be higher than traditional loans and you will have to pay them. You should consult a tax professional before leasing solar panels to your home.
If leasing is the right option for you
Leasing solar panels for your house from a solar leasing company can prove to be risky. Since the solar lease company wants to make a profit, they may try to tie your hands in a long-term agreement in order for them to make as much as possible. It is possible that you will have to make the final lease payments or find someone willing to take over the lease when selling your home. In addition, you will likely have to lower your home's price in order to attract potential buyers. Additionally, leasing solar panels can affect your credit score. You will be less likely to be approved for a home loan in future.
Leasing solar panels has another advantage: you don't need to pay upfront. In addition, the leasing agency will take care of federal tax and maintenance costs. This is particularly beneficial for those who don't meet the requirements for federal tax incentives and have poor credit ratings. Financing solar panels is an option if you are able to get a loan. Not only will it save you money over time, but it will also increase the value of your home.