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Solar Lease
A solar lease is much like a car lease. Someone else owns the equipment, and you pay a monthly fee. A solar lease differs from a solar power purchase agreement in that you are paying for the equipment, not just paying for the energy that the equipment produces. Also, a residential solar PPA will often have a fixed monthly cost for the life of the agreement while the lease will usually increase over time (although at a set amount, and probably less than electricity costs will.) However, all in all, they are very similar.
A solar lease is compelling because it’s easy to evaluate. If your monthly lease costs are cheaper than your savings on electricity costs, it makes common sense to consider. Most solar lease contracts do not require any upfront cost to you. However, with a solar lease you will typically pay double the cost when compared to buying the solar panel system outright. You should really think about this because most people do not want to pay more than they have to.
What is a solar lease?
A solar lease is much like a car lease. Someone else owns the equipment, and you pay a monthly fee. Instead of making a large investment in solar panels, you can get started without any down payment (you also have the option to pay up-front if you want). It’s a compelling option because it’s easy to evaluate. If your monthly lease costs are cheaper than your savings on electricity costs, it’s a no-brainer. You’ll be able to start saving money from the first day your solar panels are installed.
How is a solar lease different from a solar power purchase agreement?
A solar lease differs from a solar power purchase agreement in that you are paying for the equipment, not just paying for the energy that the equipment produces. Also, a residential solar PPA will often have a fixed monthly cost for the life of the agreement while the lease will usually increase over time (although at a set amount, and probably less than electricity costs will; historically, utility rates have increased over 5% each year.) However, all in all, they are very similar.
Who handles repairs?
Since solar panels have very few moving parts and are designed to last for 30 years or longer, they don’t often need maintenance. If something does come up, the company leasing you the solar panels will take care of it. They’ll also guarantee that your solar panels will perform at a certain level, based on the climate you live in. It’s unlikely that your solar panels would under-perform, but if they do, the leasing company will make any necessary replacements or pay you the difference.
What happens at the end of the lease?
Solar leases typically last 10, 15 or 20 years. When your lease is over you’ll have the option to upgrade to new technology if you’d like. You can also extend your lease, or ask your leasing company to remove the system. If you move before your lease is over, the lease will transfer to the new owners– a nice feature, since solar power increases the value of your home.
How can I get a solar lease?
Solar leases aren’t available everywhere, but they are available in about 12 states like California, Arizona, Colorado, Connecticut , New Jersey and Hawaii. We have reviewed many of the solar lease companies, and you can get a solar lease through one of our solar installation experts.
When does it make more sense to own your own solar panels?
If you plan to stay in your home long-term and can afford the up-front cost of solar panels, it makes more financial sense to buy them yourself. You’ll be able to claim the rebates and other government financial incentives that a solar leasing company would otherwise take. Once your system is paid off, you’ll be getting free power. You’ll also be able to sell renewable energy credits. With a lease, you’d keep making payments for years, but still wouldn’t own the system at the end of that time. You’ll be locked into a contract. If you sell your house and for some reason the new owner doesn’t want the lease, you’ll have to pay a penalty to get out of the contract.
Contact our solar specialists for a home solar evaluation to learn more about a Solar Lease
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SOLAR PANELS
