You can lease solar panels to put in your home. But you need to understand the pros and cons of leasing solar panels. You can decide if leasing is the right option for you by reading this article. This option is also convenient for many people.
Leasing fees
There are many things to think about when leasing solar panels. The monthly payment is often cheaper than buying the panels outright. But leasing solar panels comes with some disadvantages. These include the inability to qualify for any rebates, incentives, or federal subsidies. Lease companies can also make money by making monthly payments, as well as any incentives that the solar panels offer.
The value of your home depreciates, and you'll have to pay less for solar panels if you want to sell your home. 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 are also concerned about solar leasing and may lower the price to avoid them.
Leasing offers many benefits
People who do not have the financial resources to purchase solar panels outright can lease them. This arrangement doesn't have any upfront costs and does not require maintenance like purchasing. 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. However, you may lose some control over the location and aesthetics of the panels if you lease them.
The main benefit of leasing solar panels, is the fact that you can reduce your energy bills over time. Depending on the size of your system, you could save anywhere from 15 to 40% of your monthly utility bill. Additionally, leasing solar panels will allow you to monetize your solar energy on the SREC market.
Leasing comes with its own set of drawbacks
You're not the only person thinking about leasing solar panel for your home. There are a number of drawbacks to solar leasing. 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 may also prevent you from refinancing 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. Also, you will have to pay utility rates that are a lot higher than those of a traditional loan. You should consult a tax professional before leasing solar panels to your home.
If leasing is the right option for you
It is possible to be harmed by leasing solar panels from a lease company if you are considering installing them in your home. A solar lease company is looking to make a profit and will try to tie you up in long-term contracts. 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. To attract buyers, your home will need to be priced lower. Additionally, leasing solar panels can affect your credit score. Leasing solar panels will make it difficult to obtain a mortgage in the future.
A benefit of leasing solar panels over buying them is that they aren't expensive upfront. The leasing agency will also take care of your federal tax 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. This will not only save you time but will also increase the price of your home.