Does Solar Panel Leasing Make Sense

Like other financing tools solar leasing has its place in the home improvement industry along with same as cash financing helocs home equity lines of credit and collateralized seconds.

Does solar panel leasing make sense.

We simply do not recommend it. It just wouldn t make economic sense assuming you own rather than lease the solar panels. When it comes to leasing or buying solar panels the perfect option for you and your energy needs will depend on your financial goals and preferences. The payback period to recoup the cost of the system would simply be too lengthy.

In my last article i may have seemed unwaveringly against solar leasing and ppa s but nothing could be further from the truth. In most cases you ll save much more money in the long run by exploring other financing options like an fha title 1 loan or a traditional loan from your personal bank. Leasing solar panels for your home is not a good idea from a financial perspective. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.

A solar lease may sound great on the surface but take the time to do the math and you ll probably change your mind in a hurry. When you purchase instead of lease a solar system it dramatically raises your home s value as soon as you install it. The main practical distinction between buying and leasing a solar pv system is in ownership. Solar leasing can make sense for certain consumers.