Leasing solar panels for your home is an option. Be aware of the potential drawbacks and the costs. If leasing sounds appealing to you, this article will help you make a decision. This option is also convenient for many people.
Leasing fees
You need to take into account several factors when you are considering solar panel leases. In many cases, the monthly payments are cheaper than buying them outright. Leasing your solar panels does have its disadvantages. These include: You are not eligible for any local or federal rebates or incentives. Leasing companies make money on your monthly payments and take any incentives from the sun.
The value of your house decreases, so you will have less money to buy solar panels if your goal is to sell it. The price of solar panels can lower the value and make it difficult to sell your home if the buyer doesn't wish to lease it. Buyers have concerns about solar leasing, which may lead to a reduction in the cost of the lease.
Benefits of leasing
Leasing solar panels is an option for those who don’t want to spend the full cost of the system. This arrangement has no upfront cost and doesn't require maintenance. Leasing companies also offer special deals for first-time customers. It is possible to relax and let the company handle all the details of the installation. However, you may lose some control over the location and aesthetics of the panels if you lease them.
Leasing solar panels has the advantage of reducing your monthly energy bills. You could save anywhere between 15 and 40% on your monthly utility bills depending on the size of your system. Additionally, leasing solar panels will allow you to monetize your solar energy on the SREC market.
Drawbacks of leasing
If you're thinking about leasing solar panels for your home, you're not alone. There are several disadvantages to solar lease. One of the disadvantages to solar leasing is that you will have to lease solar panels for a long time. You may not be able sell them when you sell your home. Solar leases could also hinder your ability to refinance.
You don't have the option to claim tax incentives for solar leasing. The solar company will own the panels so you can't claim the 26% federal tax credit. Also, you will have to pay utility rates that are a lot higher than those of a traditional loan. A tax professional can help you determine whether you may be eligible for a higher credit if your plan is to lease solar panels.
If leasing is a good choice for you
If you're considering solar panels for your home, you should know that leasing them from a solar lease company can be risky. Because the solar lease company is in the business of making a profit, they'll often try to get as much money as possible by tying you up in a long-term contract. The remaining lease payments may be due to you, or you might need to find a buyer who will take over the lease when your home is sold. You may also have to lower the home's value to attract potential buyers. If you lease solar panels, it will affect your credit score. It will make it harder for you to get a loan for your home in the future.
The best thing about leasing solar panels is the fact that you don’t have to buy them upfront. In addition, the leasing agency will take care of federal tax and maintenance costs. This is especially useful for those who do not qualify or have low credit scores. Finance solar panels are the best choice if you're able to qualify for a loan. This will not only save you time but will also increase the price of your home.