Buying Vs Leasing Solar Panel

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We will discuss the pros and cons in this article but first we must address one fact.

Buying vs leasing solar panel.

If you don t buy the company you lease from remains the owner of the solar panel system and therefore receives the long term financial benefits. First understand the difference between buying and leasing. Leasing solar panels from a solar provider merely give you benefits as a renter of the energy system. If you lease the solar energy system or sign a power purchase agreement ppa a third party owns the solar panel system.

Difference between leasing vs buying solar panels. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. Buying involves purchasing the solar panels for domestic or commercial use using the buyers own or borrowed funds. Buying your solar panels means you either purchase with cash or take out a solar loan or home equity loan that you can pay off and eventually own your solar panel system outright.

The solar panels become the property of the purchaser after the funds are transferred. When you buy solar panels whether it be with cash or through a solar loan you are the owner of the solar panels. You may be tempted to lease rather than buy but consumer reports says leasing solar panels is not a bright idea. With a solar lease or solar power purchase agreement solar ppa you don t have to pay any upfront costs to install solar panels on your roof.

In conclusion leasing solar panels makes solar energy available to more people than ever. The only way to receive a 30 federal tax credit on the cost of your solar energy system is if you buy your panels. But the startup costs can still be daunting. At the end of the day purchasing solar panels outright will yield a greater return on your investment than leasing but leasing offers a level of convenience that may appeal to certain users.

Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. Instead a solar company installs and owns the solar system. The main practical distinction between buying and leasing a solar pv system is in ownership. Leasing your solar panels essentially means you rent them and the company you rent them from has ownership of the system for the duration of your lease contract.

Whether you lease or buy solar panels are a good overall idea. And while buying is still the better long term investment leasing solar panels is a good alternative to buying for many people and in many circumstances. Benefits of both owning and leasing just like with a car the choice between buying and leasing is a tough call but in both scenarios you will save money. Conclusion on leasing vs buying solar panels.

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