03 Jun 10 Things You Must Know Before Leasing a Solar System – Part 1
You may be weighing your options right now to figure out whether leasing a solar system or owning one is the right for you. In this series, we will provide you with 10 things you must know before leasing a solar system. Find the first five below and stay tuned for part 2 coming soon!
1. Triple the Cost
Add up your payments on that “zero down” solar lease and you’ll find that you’ll be paying up to triple the cost when compared to purchasing your solar system. Factor in the escalating costs and the ‘fair market value’ at the end of the lease, if you choose to purchase the system you’ll be paying close to three times the purchase price.
2. Lose the Tax Credit
If you choose to lease, the zero down solar leasing company will take your Federal tax credit that should have gone to you. If you are looking to purchase a solar system, we encourage you to do it soon, because the residential renewable energy tax credit will expire in the near future!
3. More Difficult to Sell Your Home
It is more difficult to sell a home with “leased solar”. The new buyer must agree to assume the lease and they must also qualify to do so. The seller can buyout the lease prior to selling the home, but the buyout price will generally cost more than it would have to purchase the system outright from the start. Additionally, homes with a leased solar system sell for 5-10% less than homes that have owned solar.
4. Escalating Costs
When you lease solar, your monthly payments may increase by up to 2.9% per year. If you purchase, you will be protected against rate inflation.
5. Double the Cost for Electricity
The cost of electricity is a minimum of 15 cents per kWh. When you purchase a system, your cost for electricity is around 6-7 cents per kWh (or less).
Energy Saving Pros is an established PV (Photovoltaic/Solar) developer and installer in Northern California. We provide turn-key solutions for residential, commercial, agricultural, industrial and educational clients. And we’re 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 can really be.