Solar Leasing or Purchasing: Which Is Best for You?

Once you’ve decided to switch into a solar energy system, the next thing to consider is how to finance it. There are two options in financing your solar energy system: leasing or purchasing. Your financial goal is the main thing to consider when choosing a financing option. Both of them have their own pros and cons when it comes to maintenance, cost, savings, and other more factors. To help you choose which one suits your needs best, here are the differences and similarities between these two.

Cost

Solar leasing is definitely a lot cheaper than purchasing your own system. You can avail for one even without money down as long as you meet the requirements and are able to pay the monthly cost. However, you can’t enjoy tax credits and incentives since the system belongs to the leasing company. If you’re planning to use it on our business, you may consider a PPA meaning an operating lease to provide your company reliable energy source.

On the other hand, buying your own solar energy system costs a lot at installation but you can use it for years without worrying of monthly payments. You can also enjoy rebates that significantly reduce the overall cost of the system.

Maintenance

When it comes to maintenance, owning a system means that you are the one responsible for its repair and maintenance. Solar energy systems are low maintenance, durable and have warranties so you don’t have to worry much about taking care of it. Leasing your solar energy system leaves it to the hands of the leasing company. If it needs repair, cleaning or maintenance, simply call the leasing company and they will be the ones to handle it.

Return of Investment and Savings

Although both options will help you cut down on your electricity costs, purchasing a solar energy system can save you more in the long run as long as it is up and running. If you’re planning to sell your property, purchasing and installing a solar energy system is a great way to increase your property value. However, if it is for business use or just for temporary use, a solar lease would be enough for your needs.

Ownership

Another huge difference between these two options is your ownership over the solar panels. Buying or loaning it upfront makes you the owner of your energy system. If you lease, you don’t own the solar panels and have to return them to the leasing company at the end of the term. You may choose to renew the lease if you enjoy its benefits. On the other hand, you may also prefer to buy it after the term if you want to keep the system and make it a permanent part of your house.

Before deciding on a financing option for your solar energy system, be sure to consider all the factors first and select one that best suits your type of property. With these tips, selecting the right one is made a lot easier than before.


Delsie Leff
 

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