Does Leasing Solar Panels Save Money

You receive free electricity for the life of the solar energy system usually 25 to 30 years.

Does leasing solar panels save money.

Many leases contain an. With a lease arrangement you ll make lower monthly payments while your freed up cash can work for you in other investments like stocks bonds or real estate. Keep in mind that you don t have to buy solar panels you can lease them too. For one lessees won t qualify for tax incentives.

If your roof is deeply shaded by trees mountains or buildings solar panels won t work well. While solar lease options typically have less financial benefit to homeowners than owning a system a good solar lease can still save you anywhere from 10 to 30 percent compared to what you re paying your utility company for electricity. If your credit score prevents you from qualifying for a zero down solar loan then leasing solar panels might be your best option. That offers a lower upfront cost although since you don t own the panels they won t raise the value of your home.

The federal government provides a 30 percent tax cut on solar installation costs though that program is set to end this year with nothing in the works to replace it. Here s where it gets really good. Savings vary from 5 25 on monthly electricity bills. These options could save you more money than a solar lease depending on your circumstances.

It may seem obvious but access to sunlight is important. Solar leasing does have some drawbacks potential lessees should pay attention to. Leasing solar panels for your home is not a good idea from a financial perspective. We simply do not recommend it.

Your power rates with the leasing company are locked in for the life of the agreement. You can save between 40 percent and 70 percent on electricity costs over the lifetime of your solar panel system depending on your property and the incentives in your state. Considering that solar panel installations start in the tens of thousands of dollars leasing could be more accessible to the general population. Essentially the solar leasing company is selling you power at a reduced rate generated from the newly installed solar panels.

The credit could save the average homeowner 5 000 or more depending on the size of the system according to energysage a solar marketplace with a calculator to help estimate savings.