26 Dec Leasing vs. Buying a Solar Panel System
Solar panels are a relatively new utility option for homeowners, and thus, there’s a lot of confusion surrounding the specifics of solar panel installation. Most people think leasing sounds like the more appealing option because purchasing a solar panel system is so costly. However, leasing a solar panel system isn’t nearly as attractive as it sounds.
Leasing a solar panel system doesn’t yield the same benefits as leasing a car does, although they share similarities in principle. Like a leased car, you’re unable to make any modifications to your system or you will violate your lease agreement. A leased system is ineligible for tax credits and is subject to rate inflation as high as 2.9 percent per year.1 Upon the end of your lease, you will be required to return your system and will lose the money you’ve put into it.
Owning a system yields more benefits, including not losing the money you’ve invested into your system.
Why Owning Your Own Solar Panel System Is Hard to Beat
Buying and installing a solar panel system is expensive, but it’s an investment that provides big returns over time. Purchasing a solar panel system can cost between $15,000 and $20,000 after government tax credits, which is a substantial sum of money for most middle-income families. Despite the hefty cost, your solar panel system will immediately slash your electricity bills between 70 and 100 percent and will generally pay itself off in five to seven years depending on your current energy use, the size and orientation of your roof and how effective your panels are.1
Additionally, since your panels become a part of your home, you’re able to use a home equity loan or line of credit to help finance your solar panel purchase. Any interest accrued is tax deductible and the interest rates are relatively low – between three and five percent.
Permanently installed solar panel systems can increase the value of your home significantly and make it more competitive in the housing market. A study from the National Bureau of Economic Research revealed that San Diego and Sacramento county homes in the mid-$500,000 range increased their selling price by an estimated $20,194 after installing photovoltaic solar panels.2
Several years of electricity savings combined with the increased value of your home when you eventually sell makes owning solar panel systems a preferable option compared to leasing.
Purchase a Solar Panel System from Energy Saving Pros
Take the leap and transition from the grid to solar with solar panel systems from Energy Saving Pros! We design, develop and install custom solar photovoltaic energy panels on any type of home or business to help slash energy bills and contribute to a healthier environment.
Expertise is the core of all Energy Saving Pros’ services, from professional installation of solar panels to routine maintenance. We’re dedicated to renewable energy and helping our customers save money by going green. Contact us today to schedule a consultation!
1 – https://www.consumerreports.org/energy-saving/real-cost-of-leasing-vs-buying-solar-panels/