A key consideration in the decision to have solar PV installed at your home is whether to buy the system or to lease it. There is no doubt that having solar panels convert sun light into electricity benefits everyone, but your pocket book will be impacted for years to come by your decision to buy or lease.
KW Solar Solutions recommends owning the system over leasing or Power Purchase Agreements (PPA). Here’s why:
- Leasing and PPA’s provide far less savings to homeowners as compared to owning.
- Leases include price increase escalator clauses which cut into your savings and at 2.9% annually, they are higher than the rate of inflation the last several years.
- With the choice to lease you lose all of the financial incentives available. The federal tax credit, available state grants and Solar Renewable Energy Credits (SRECs) are signed over to the leasing company.
- At the end of the lease/PPA your solar panels are either removed, in which case you lose the savings on your energy bills; or the lease is renewed at the going interest rate which may be significantly higher than those today.
- Academic studies show that a solar system adds significant value to your home, but only if you own the system; not if it is leased from a third party.
- It can be difficult to sell a home if it’s encumbered by a lease and the required lien or fixture filing. Homeowners are often required to buyout the lease in order to sell their home.
- With a lease program you do not have the ability to update your system or convert it to an off-grid battery storage solar system.
- Leasing companies generally will not allow the homeowner to request equipment made in the USA.
Please check out what Consumer Reports has to say on the topic here.
So, take the leap and go solar. Clean, renewable electricity generated at your home by beautiful sunshine will save you way more money if you own the system rather than lease.
If you’d like a free solar consultation from KW Solar Solutions, please fill out our contact form and we will contact you to schedule one at your earliest convenience. Or feel free to call us with any questions at 302-932-2784.