Is Leasing Solar Panels A Good Idea

Pay little or nothing and save hundreds of dollars per year on average.

Is leasing solar panels a good idea.

The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. The contracts for these leases and ppas are always long and can be difficult to deciper. According to new research sponsored by the u s. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.

A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option. It sounds good in theory but in practice the contracts for solar leases and power purchase agreements can and do contain some nasty surprises that consumers often don t know about until it s too late. Third party solar leases have proven themselves incredibly popular in recent years playing a key role in propelling rooftop solar panels into the mainstream.

Here s why you might want to lease solar panels instead of buying or financing them. Leasing solar panels for your home is not a good idea from a financial perspective. In a lease you pay to rent the solar power system typically for about 20 percent less than you were paying for electricity explained freedom forever solar. Another benefit of owning versus leasing solar panels is the premium it offers on the value of your home.

Solar leasing provides an economical entrance point for homeowners interested in making the switch to renewable energy. The main practical distinction between buying and leasing a solar pv system is in ownership. Installing a solar farm on farmland could cause the land to lose its current agricultural use value status since the land is no longer used exclusively for agriculture. A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years.

Some companies also offer power purchase agreements or ppas. Depending on the state anywhere from 50 90 of rooftop solar installations were financed by solar leasing or ppa at the beginning of 2014 according to the seia. Department of energy s lawrence berkeley. Both a solar leaseand ppa are affordable easy ways to enjoy solar power without a large upfront investment.