Lease solar panels to make your home more energy efficient. But you need to understand the pros and cons of leasing solar panels. 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
There are many things to think about when leasing solar panels. In many cases, the monthly payments are cheaper than buying them outright. But leasing solar panels comes with some disadvantages. These include: Not qualifying for any federal or local incentives or rebates. Lease companies can also make money by making monthly payments, as well as any incentives that the solar panels offer.
You will see a decrease in the value of your home. If you decide to sell, you will need to pay less for solar panel installation. Solar panels will reduce the value of your house and make it more difficult to sell if you don't want the lease. Buyers have concerns about solar leasing, which may lead to a reduction in the cost of the lease.
Leasing offers 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. Special deals are also offered by leasing companies for customers who are first time. You can also enjoy the benefit of not worrying about the installation process, as the solar company will take care of it. If you lease the panels, however, you might lose some control over their location and aesthetics.
The main benefit of leasing solar panels, is the fact that you can reduce your energy bills over time. You could save anywhere between 15 and 40% on your monthly utility bills depending on the size of your system. 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. There are many disadvantages to solar leasing. Solar leasing has its downsides. First, the lease of solar panels is a long-term commitment. If you decide to sell your house, you might not be able resell the panels. Solar leases may also prevent you from refinancing your home.
Solar leasing has another drawback: you can't claim tax incentives. The solar company will own the panels so you can't claim the 26% federal tax credit. Additionally, your utility rates will be much higher than those for a traditional loan. To determine if you qualify for a higher tax credit, consult a tax professional if you are thinking of leasing solar panels.
Leasing is an option?
It is possible to be harmed by leasing solar panels from a lease company if you are considering installing them in your home. Solar lease companies are in business to make money, so they will often tie you up in a long term contract. You may have to pay off the remaining lease payments yourself or find a buyer willing to assume the lease when you sell 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. This will make it more difficult for you to qualify for a home loan in the future.
You don't have pay up front for solar panels when you lease them. The leasing agency will also take care of your federal tax and maintenance. This is especially useful for those who do not qualify or have low credit scores. You may qualify for a loan if your solar panel financing is possible. You'll save money and increase the value of you home.