Lease solar panels to make your home more energy efficient. Be aware of the potential drawbacks and the costs. If you read this article, you will be able decide if leasing the equipment is right for yourself. You will also find this option convenient.
Leasing cost
There are many things to think about when leasing solar panels. The monthly payment is often cheaper than buying the panels outright. Leasing solar panels has its downsides. These include not being eligible for rebates or federal incentives. Leasing companies make money on your monthly payments and take any incentives from the sun.
Your home's value will decrease, so you will have to pay less to get solar panels. You may lose the value of the home due to the cost of solar panels. If the buyer isn't interested, it might be difficult to rent 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. The best part about leasing is that you don't have to worry about the installation. You may lose some control of the panel's location and aesthetics if you lease them.
Leasing solar panels will help you reduce your energy costs over time. Your monthly utility bill could be reduced by anywhere from 15% to 40% depending on how big your system is. Additionally, leasing solar panels will allow you to monetize your solar energy on the SREC market.
There are downsides to leasing
You are not the only one thinking of leasing solar panels for home. Solar leasing has its downsides. Leasing solar panels requires a long-term commitment. This means that the panels may not be available for sale when your house is sold. You may not be able to refinance your house if you lease solar panels.
You don't have the option to claim tax incentives for solar leasing. Since the solar company owns the panels, you won't be able to claim the 26% federal solar tax credit. You will also be required to pay much higher utility rates than for traditional loans. If you are considering leasing solar panels for your home, make sure to consult with a tax professional to determine if you can get a higher tax credit.
Lease or lease?
A solar lease company is a good option if you are thinking about solar panels for your home. 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. You may also have to lower the home's value 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.
You don't have pay up front for solar panels when you lease them. A leasing agency will also handle your federal tax payments and maintenance. This is especially beneficial for those who aren't eligible for federal tax incentives, or who have low credit scores. Finance solar panels are the best choice if you're able to qualify for a loan. You'll save money and increase the value of you home.