Are you frustrated with the fact that buying solar panels for your home is an expensive investment? It’s kind of ridiculous to think that the costs of setting up a system could be upwards of 40 thousand dollars. Even though it is a good investment with tax advantages, most people could not afford the up-front costs.
Fortunately, there is an affordable option available for people who want to go green without having huge investment costs. This option is known as residential solar leasing. In this article we will discuss what residential solar leasing is, as well as provide you with the positive and negative aspects of it. In the end, we hope this article will help you to make an informed decision.
What Is Residential Solar Leasing? – It is a fairly new concept but it is exactly what its name implies. Solar companies lease their solar panels to home owners for a fixed monthly fee or a fixed price per kilowatt hour. Once a lease is signed the solar company will install the solar panels on your home, as well as keep it maintained through out your lease period. Once the lease expires you can extend it or end it. If you choose to end the lease the solar company will remove the panels at no cost to you.
Positive Aspects – The biggest positive of residential solar leasing is that it eliminates the huge up-front investment you would have if you were to buy the system. You will also begin saving money right away because you are not trying to recoup a huge investment. Another positive is that with a long lease you will be locking in your costs during the entire lease. This is not the case with the utility companies because their prices keep rising every year.
Negative Aspects – The biggest negative I can think of when leasing residential solar panels is the contract lengths. The contract lengths are typically 10, 15, or 20 years. This means you could potentially be stuck with the bill if you decide to sell your home. Another disadvantage is the fact that you will always be paying a monthly bill. If you purchased your own system you would be getting free power once the system has paid for itself.
Now that you have all the information that you need, you should be able to make an informed decision on whether to buy or lease your residential solar system. If your goal is to go green and save on your monthly utility bill without having huge investment cost, then leasing is the right option for you. If your goal is to go completely off the grid and eventually have no power costs then buying is the option for you. Both options will have a positive effect on our environment, you just have to choose which option is best for you.