The solar energy market is estimated to reach $223.3 billion by 2026. As the climate crisis worsens and the cost of living increases, lots of people are turning to solar panels as an alternative source of energy.
But paying for and installing solar systems isn’t an option for everyone. So to still enjoy the benefits of solar energy, lots of people are getting leased solar panels.
Keep reading to learn everything you need to know about solar panel leasing.
What Is a Leased Solar System?
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A leased solar system is when a solar system is installed in your home and you pay a monthly fee to use it. It’s like renting out a solar system.
The solar installers cover the cost of the installation and the panels. Then you pay your monthly fee for the solar lease period.
Pros of Leasing Solar Panels
Solar leases are a popular choice for households who cannot afford the upfront cost of a solar panel and its installation. And since the solar installation company is the owner of the panels, is also responsible for its maintenance.
Solar leasing also means you don’t need tax liability for it to be worth it. Instead of saving money with reduced federal taxes, you can save money on your monthly leasing costs because the tax credit goes to the installation company instead.
The most important benefit of leasing solar panels is that you’re able to use solar energy. This reduces your monthly bills and drastically reduces your carbon footprint. For households that can’t afford the upfront cost of solar panels, this way, they’re still able to get this benefit.
Cons of Leasing Solar Panels
The biggest drawback of solar leases is that it doesn’t save you as much money in the long run. While you save on the upfront cost of installation, the amount you save per month is not as much as it would be if you bought the panels. This is because even though you lower your energy bills by the same amount, your monthly leasing fee is an added expense.
Another problem with not owning the solar panels on your house is that you don’t get any of the other benefits. The solar company gets the tax benefits, not you. And if you try to sell your home, the value of your house doesn’t increase because the panels are not technically part of the house.
Is a Leased Solar Panel Right for You?
When it comes to solar, “lease or buy?” is an important question you need to ask yourself. When considering the cons of leasing, it’s clear that buying solar panels is the best way to get all the benefits. But this only works if you can afford them.
But if you can’t afford the upfront cost of panels and installation, the benefits of leased solar panels are still worth it. You reduce both your monthly energy bill and your carbon footprint this way.
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