Is Solar Panel Leasing A Good Idea

It sounds good in theory but in practice the contracts for solar leases and power purchase agreements can and do contain some nasty surprises that consumers often don t know about until it s too late.

Is solar panel leasing a good idea. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. According to new research sponsored by the u s. As states continue to emphasize solar see california s solar panel mandate leasing could be an affordable option for many residents. We simply do not recommend it.

The contracts for these leases and ppas are always long and can be difficult to deciper. Installing a solar farm on farmland could cause the land to lose its current agricultural use value status since the land is no longer used exclusively for agriculture. Going solar is a great investment for your home and purchasing a new property with solar already installed is a surefire way to save money in the long run. Breaking your lease with a solar panel company will usually result in you being charged the full bill for the 15 years of usage the homeowner agreed to.

This video reviews the benefits of buying and leasing solar panels. In most cases you ll save much more money in the long run by exploring other financing options like an fha title 1 loan or a traditional loan from your personal bank. A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years. Does this mean solar leasing is a bad idea.

Leasing solar panels for your home is not a good idea from a financial perspective. Another benefit of owning versus leasing solar panels is the premium it offers on the value of your home. Pay little or nothing and save hundreds of dollars per year on average. Absolutely not it just means that you ll have to do your own research to make sure you re getting the best available deal on solar you ll still want to do this even after any rules are put in place.

Both homeowners and potential homebuyers can benefit from solar energy. Department of energy s lawrence berkeley. Purchasing a solar panel system with cash or financing a purchase with a solar loan is your best option when you want to maximize the financial benefits of installing a solar panel system rather than solely benefitting from the system s environmental benefits. Solar leasing does have some drawbacks potential lessees should pay attention to.