When you decided to upgrade your home to include solar panels you are presented with two options from many different companies. These options are: to either buy solar panels or to lease solar panels from that company.
So should you buy solar panels or lease them? The short answer is: you should absolutely buy them.
At Envirosolar Power, we hate seeing home owners get tricked into leasing solar panels from other another company. In order to arm you with knowledge on solar panels here is a side by side comparison of buying solar panels vs. leasing solar panels so that you can be better informed.
BUYING / LEASING
|Tax Incentives||When you buy solar panels you are able to take advantage of the federal tax incentives that are currently in place for solar. These incentives are currently 30% of your spend on your home’s solar system. The cost and incentive amount vary depending on the size of your home, system, and electric needs. On average, a 30% incentive translates into $7,000 back in your pocket when you buy your own solar panels||When you lease solar panels from a solar panel provider, you are unable to take advantage of the tax incentives currently in place for solar. In fact, the company from which you are leasing takes the tax incentives for themselves as part of their profit margin. This means that on average, when you lease solar panels, you are giving away $7,000 to that company. In essence you are losing that money!|
|Energy Savings||With your own personal solar panels, you are able to take advantage of all of your energy generated via your solar panels. If your system generates more power than you and your family are currently using, you can even sell this power back to the municipal power grid. In the end, you may be making money from sold power.||When you lease solar panels, you only get partial savings on your energy bill. You will still be paying monthly to the company from which you leased for the power being generated on your roof. The only savings then are the difference between your previous monthly power bill and what the leasing company is charging you. This can be as small as a $5 dollar savings a month. Additionally, if your home generates more power than you use, you not only still have to pay your monthly energy fee, but the leasing company then sells your excess power back to the grid. They are effectively making even more money off of you!|
|Monthly Cost||If you buy solar panels there is no monthly fee that you consistently pay. You will only pay for whatever energy you use that your rooftop panels did not generate. Depending on your home and energy usage this can easily be $0 a month.||If you lease solar panels then there is a fixed monthly cost that you must pay to the leasing company to use the power that your home is generating with their panels. This is a fixed rate, regardless of energy cost which can fluctuate to be significantly cheaper than what you pay them. Over the course of your extremely long lease, the company will periodically increase your monthly fee despite solar technology improving and energy becoming more inexpensive.|
|Fair Price||Solar panels that you own outright are purchased at the fairest price possible. This means that you can do research and see the exact cost of the panels that you are purchasing from Envirosolar Power. This ensures the best value for your money.||Leased solar panels are significantly bloated in price over the lifetime of the lease. With constant increasing monthly fees, you can end up paying double to triple the cost of the solar panels over the full duration of the long lease.|
|Maintenance||When you own the solar panels that are on your roof, you are responsible for their maintenance. Solar panel maintenance consists of the simple task of spraying them with water from a hose every 4 months if it has not rained to remove dust. It is easy and simple to care for your rooftop solar panels.||If you home has leased solar panels on it, then the company that you lease from is responsible for maintenance of the panels. This means that if you see a drop in the panel’s efficiency due to dust, you have to schedule a visit from the leasing company techs. Such appointments can take weeks to happen and always have that annoying 4 hour window where the company will come and simply spray off your panels (probably with your own garden hose).|
|Selling your Home||Solar panels that have been purchased outright significantly increase the value of your home depending on the size of the system. If you are selling your home after installing solar that you purchased, you can expect to see a return on your investment in an increase in home market value.||Leased solar panels significantly complicate the sale of your home. This is because the new owner must qualify for, and accept the lease that you previously entered into. If not, they pay a huge fee to break the lease. If they do not qualify for the lease then this is a quick and easy deal breaker for the sale of your home.|
|Warranty||Solar panels purchased though a company come with a manufacturer 25 warranty through the company that makes the panels themselves. Companies that manufacture solar panels are huge companies such as LG that are going to be around for many years to come. This means that if there is a problem with your panels, you can go directly to the manufacturer for a replacement or service, resulting in peace of mind.||When you lease solar panels the company that owns them is responsible for any problems that occur with the panels on your home. However, if that leasing company goes out of business or stops servicing your area, then you are responsible for the issue without the safety net of any sort of warranty.|