10 Jun 10 Things You Must Know Before Leasing a Solar System – Part 2
If you read part 1 of this series, you are likely already starting to see which option is best for you when it comes to leasing vs. owning a solar system. In the second part of this series, we will finish out the 10 things you must know before leasing a solar system.
6. What Happens When It’s Over
At year 20 if you own your solar energy system, your system still has another 15 to 20 years worth of income generating potential. When you lease a solar system, at year 20, you’ll have to give your solar system back to the leasing company. If you’d like to keep the system, you’ll have to continue making payments or you’ll have to buy it from them at ‘fair market value.’
7. No Changes
You cannot make any modifications to the solar system. Some customers may want to add battery backup down the road and with a lease this is not an option because you don’t own the system.
8. Banks Vs. Investors
Zero Down Solar loan options are a much better deal than a solar lease or PPA. Solar lease finance companies make a 20-30% return on their investment. If you purchase with a loan you are replacing the 20-30% return the leasing company makes with a 4-8% return the bank makes.
9. Property Tax
When you purchase solar, you add significant value to your home without increasing your property taxes. When you lease solar, you don’t get the added value but you still have all the expense.
10. Rent to Own Solar
Leasing Solar is like purchasing one of your most expensive investments from a ‘Rent to Own’ store. Before you sign that airtight leasing contract, you had better have your attorney and your accountant read the fine print. When compared to purchasing a solar system, especially as low as prices are today, a solar lease will probably turn out to be one of the worst investments that you’ll ever make.
Energy Saving Pros is an established PV (Photovoltaic/Solar) developer and installer. We provide turn-key solutions for residential, commercial, agricultural, industrial and educational clients. We are proud to offer you an incredible array of financing options, including zero down. Please speak with an Energy Consultant to see just how affordable owning your solar system really is.