Solar Panel Purchase Vs Lease

As the cost of solar technology drops more and more homeowners are considering buying or leasing rooftop solar panels.

Solar panel purchase vs lease.

Many solar installers advertise solar leases or power purchase agreements solar ppas as an easy way to reduce your electricity bill. Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. Leases and ppas are pretty similar but they have one big difference. Leasing solar panels from a solar provider merely give you benefits as a renter of the energy system.

A solar system can either be purchased with cash outright or through a loan. If you don t buy the company you lease from remains the owner of the solar panel system and therefore receives the long term financial benefits. When you buy a system with a loan you receive the tax credit but when you lease a system the leasing company receives the benefit solar lease tax credit. The solar panels become the property of the purchaser after the funds are transferred.

In fact the u s. With a solar lease or solar power purchase agreement solar ppa you don t have to pay any upfront costs to install solar panels on your roof. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. The main difference between buying and leasing a solar system is who owns the system.

If renting is more appealing you can lease the system or enter a ppa power purchase agreement wherein you get a new rate of electricity kwh instead of the one the utility gives you more on this later. The only way to receive a 30 federal tax credit on the cost of your solar energy system is if you buy your panels. With a solar lease you re paying a fixed monthly payment for the solar panels and system equipment and with a ppa you re simply paying for the solar power the panels produce which will vary from month to month. Tax credit solar systems are eligible for a 30 federal tax credit which reduces the cost of the system.

Department of energy projects that 900 000 homes will. If you are interested in a simple low maintenance option for installing a solar energy system on your home leasing solar panels is a good option for you. Leasing is a contractual agreement between a company providing the solar installation the lessor to the company or individual acquiring the solar installation the lessee based on regular payments of lease rentals.