Purchasing Options: Leasing vs. Buying
When making the switch to solar, it is important to evaluate the different purchasing options the solar installation partner offers. Leasing a solar system has its advantages. You will not have a loan, you may not have to worry about solar panel system maintenance, and if you decide you are done with the solar equipment installed on your roof, you can be done leasing the system (depending on the length of contract). However, leasing can also have its drawbacks.
Leases have contracts lasting for years, and you miss out on any tax credits or incentives your state might offer and the federal tax credit of 30%–those credits will go to the solar company you are leasing from, and you will be in a contract. You will also not own your solar panel system.
Another financing option involves solar ownership, either by paying cash up front, or through solar loans. With solar ownership, you benefit from the full advantages of owning the system, including tax credits, rebates, and long-term energy savings. By paying cash, you make a one-time investment and enjoy immediate savings on your electricity bills. Alternatively, solar loans allow you to spread the cost over time, typically with lower monthly payments which can be offset by your reduced energy bills. Both methods lead to full ownership of the solar panel system, providing you with greater control over your energy production and potential savings in the long run.