Solar Panel Ownership Tips For Home and Business Owners
Solar panels can be a significant initial investment for home or business owners, and they can offer quite a few financial benefits as well.
For this reason, it’s crucial for those interested in solar panel systems to be aware of the two notable methods for acquiring solar panels: leasing and buying.
Here’s a quick summary of both:
- Leasing Solar Panels
- This can be done either through a solar lease or a power purchase agreement (PPA). The expected down-payment is often variable depending on the provider, and the monthly payment/average cost is much the same. One of the benefits of leasing solar is that it means limited upfront costs and allows those who don’t have the outright purchasing power to switch to solar energy; one of the cons of solar leasing is that leasers may end up saving less because of their expected monthly costs.
- Buying Solar Panels
- If you want to see the greatest return on your solar array, buying the solar panels outright is the way to go. The biggest con is the price—some home and business owners may find they don’t have enough to purchase a solar panel system immediately. But the pros far outweigh the cons, as you can make a significant return if you sell excess power back to the grid, and there are a number of notable tax credits and rebates that solar panel owners may qualify for if they choose to buy.
The Difference Between Buying and Leasing Solar
Leasing Solar Panels
One of the most common methods of leasing solar power is the appropriately-named solar lease. This is usually a 20-year contract that permits a company to install solar panels on your property without you actually purchasing the system. You’ll pay monthly installments and be subject to annual price surges in exchange for the energy output by the panels.
This is a more approachable and affordable short-term solar financing option for some. Still, the charges—monthly installments, price surges, lack of tax credits/rebates—can begin to pile up quicker than expected.
What’s more, unlike buying solar panels, leasing can actually decrease the long-term value of a home. This is because those looking to buy a house where solar panels are on a lease, and not fully purchased, will have to both qualify for and opt into the solar lease, a 20-25-year agreement that can turn many away.
Buying Solar Panels
The upfront cost of buying a solar energy system can appear to be a formidable obstacle for many interested persons and parties, and it might even be the reason for some to turn away from solar altogether.
However, the net benefits tend to outweigh the net drawbacks.
Purchasing a solar system means that your home or business gains some kind of energy independence from the commercial grid. This won’t only result in lowered utility costs and the ability to operate during periods of grid overload or blackout; it can also present a viable opportunity for exchange, as solar power owners can sell their excess power back to their local power grid for rebates and more, a process known as “net metering.”
Keep in mind, there is often some kind of solar tax credit that you can apply for to help offset the cost of the system. Rather than taking out solar loans or making a deal with leasing companies, you could instead look for a federal tax credit, or any other number of the solar incentives or tax incentives that exist to help solar panel owners.
Should You Lease or Buy Solar Panels?
Whether you choose to buy or lease solar energy, investing in an energy-efficient system will deliver returns regardless. That could mean complete energy independence, lower utility bills, or the simple knowledge of going green. Whatever it means for you, ECG Solar™ is happy to help you in whatever solar route you choose to go.
So get in touch with ECG Solar™, Iowa’s Premier Solar Provider™, and schedule a consultation regarding buying or leasing solar. You might be surprised as to what’s available, and with our Premium Tier 1 Panasonic™ panels, standby generators from Kohler™, and solar battery storage systems from Enphase™, we’re more than ready to provide buyers or leasers with premium renewable energy equipment at an affordable price.