Buying vs. Leasing Solar Panels: Which is Right for You?
When it comes to enjoying the benefits of clean, renewable energy, you have three options: purchasing solar panels with cash, opting for a solar loan, or exploring solar leasing, also known as a power purchase agreement (PPA). To determine the best approach for your specific needs and financial goals, let's delve into the differences between buying and leasing solar panels.
Pros and Cons of Leasing vs. Buying Solar Panels:
Carefully weigh the advantages and considerations associated with each option to make an informed decision that aligns with your vision of going solar. Our team at Photon Solar is here to provide expert guidance and help you choose the most suitable path.
Contact us today to discuss your solar panel options and embark on an eco-friendly journey towards energy independence.
Unlock the Financial Benefits of Going Solar with Photon Solar!
Discover the advantages of different payment options for your home solar energy system. At Photon Solar, we offer flexible solutions to suit your needs. Explore the financial benefits below:
Buying with Cash:
Higher long-term savings for homeowners.
Immediate monthly energy bill savings, with no monthly payment to offset the savings.
Financing with a Loan:
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Low upfront cost, with potential for zero upfront payment in some cases.
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Significant long-term savings.
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Monthly utility bill savings, offset by a monthly loan payment.
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Loan payment decreases over time, eventually disappearing.
Solar Leasing or PPA:
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Lower upfront cost compared to purchasing with cash.
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Maintenance responsibility lies with the leasing company.
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Monthly electricity bill savings, balanced by a higher monthly lease payment.
Make an informed decision and maximize your savings with our expert guidance. Contact Photon Solar today and embark on a cost-effective and sustainable energy journey for your home.
What are the pros and cons of leasing vs. buying solar panels?
Let’s go through some of the pros and cons of leasing solar panels compared to purchasing solar panels with a loan. Make sure you talk to a qualified solar professional to find out what makes sense for your particular situation.
Monthly Costs
When you choose to lease solar panels through a solar lease or Power Purchase Agreement (PPA), you'll be responsible for monthly payments. Depending on the specific terms, some leases may require an upfront payment while others may have $0 down.
In comparison, solar loans offer the potential for greater savings. With loans, the amount owed gradually decreases over time, leading to reduced monthly payments and eventual full repayment.
Maintenance and Repairs
Leasing solar panels can be appealing if you prefer minimal responsibility for panel upkeep. The leasing company or installer typically handles maintenance and repairs, sending out a dedicated crew when needed.
While this may seem advantageous compared to purchasing, selecting a solar provider offering comprehensive warranties can provide similar peace of mind. With warranties covering both service and products for the lifespan of your panels and loan, you can eliminate concerns. Additionally, solar panels require minimal maintenance overall.
Selling Your Home
When you lease solar panels, you don't own them. This means that if you decide to sell your home, you'll need to negotiate with the solar company to either purchase the lease or transfer it to the new homeowner.
On the other hand, studies show that homes with owned solar systems tend to sell for more and sell faster. By owning your solar panels through a loan, you have the potential to recoup the loan amount or even make a profit when selling your home.
Solar Incentives
When you choose to purchase your solar power system instead of leasing it, you become eligible for various solar rebates, incentives, and state tax incentives, depending on your state. Additionally, the federal government offers the most significant solar incentive, the solar federal investment tax credit (ITC), currently set at 30% until the end of 2032*. It's important to note that the federal tax credit is only applicable to the owner of the system, further highlighting the benefits of buying over leasing.
Why should you avoid leasing solar panels? The answer ultimately depends on your goals, but in most cases, buying a solar system is a far superior option. By opting to purchase solar panels, you can enjoy lower electric bills and eventually generate free energy for your home, making it a wise and profitable investment.
How Leasing vs. Buying Solar Panels Impacts Home Selling
When weighing the decision between leasing or buying your solar panel system, it's crucial to consider the implications if you plan to sell your home during the loan or leasing agreement period.
Relocating a solar system can be costly and impractical, especially considering that solar panels increase the value of your home, resulting in a higher selling price and reduced time on the market. Extensive research supports these findings:
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Potential buyers are willing to pay an additional $12,000 to $15,000 for a home with an average-sized solar array, and even more for a larger array.
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Every dollar saved on utility bills due to your solar installation can increase your home's value by a remarkable $20.
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Homes equipped with solar arrays sell 20% faster and at a 17% higher price.
These statistics highlight the significant advantages of having solar panels installed on your home. However, if you anticipate a future move, it's essential to consider this factor when deciding between leasing and buying your system. In such cases, purchasing the system with cash or through a loan may prove to be a superior investment REQUEST A FREE QUOTE