You’re passionate about the future of the planet. You may be cost-conscious or both. Either way, you’re looking into renewable energy installation to cut down on carbon emissions a little bit and save yourself some money.
But there’s a lot to learn. When is the best time to install renewable energy? How do you set it up? Should you buy or lease the system? How much will it cost?
We’ll look at the answers to these and other questions below, so keep reading!
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The Hidden Costs of Solar Leasing
When installing renewable energy, you’ll have the option of buying or leasing solar panels. We do not recommend solar leasing due to the hidden costs that can add up over the long term. The most significant cost associated with solar leasing is the lack of ownership of the panels; you do not own the boards, so you have no actual claim to any energy produced.
Additionally, these leasing terms have steep termination costs if you end the arrangement. You also have to factor in the cost of the energy purchased from the leasing companies instead of the solar energy produced. Although solar leasing may appear more cost-efficient in the short term, in the long run, you may end up paying much more than you would if you had bought the panels outright.
Furthermore, with leased panels, you also forfeit some of your rights to them, such as the ability to benefit from any state or federal tax credits that may be available for solar power. On the other hand, purchasing and owning solar panels will provide you with the most significant long-term savings and the opportunity to take advantage of substantial tax incentives. Go here with Blue Raven Solar. You can be sure that you will get a quality solar panel system that you can own.
Understanding the Financial Risks Associated with Solar Leasing
Solar leasing is a common way for homeowners to install solar panels and benefit from the renewable energy produced. However, as explained by the article, by leasing solar panels, the solar company retains ownership of the system, and the homeowner pays a monthly fee for the usage and maintenance of the system.
While this approach is convenient and not too expensive, it is not a profitable option in the long run. As the homeowner does not own the system, the incentives and tax credits that lower the cost of the system are not applicable.
Moreover, after the lease term ends, the homeowner is left with no asset, unlike when you buy solar panels outright and thus retain ownership. Therefore we do not recommend solar leasing and instead suggest purchasing the solar panels outright to save on cost and gain a long-lasting asset.
What You Should Know Before Signing a Solar Lease
When installing renewable energy, you can buy or lease solar panels. Some potential purchasers may opt for solar leasing, but it’s essential to know the details before signing on the dotted line. Solar leasing involves a third party owning the system and receiving tax credits related to the energy produced while the lessee pays them either a monthly or annual fee.
However, the lease may have no provision for ownership of the system despite a long-term commitment, and that’s the actual drawback. Leasing companies often charge more than they should, so if you can purchase the system outright, it may be the better option if you plan to stay in your home long-term.
In addition, solar leasing is no guarantee that there will be long-term savings. You could lose money in the long run if costs increase or you move and must cancel the lease. Understanding the complexities of a solar lease is essential before you sign.
Actual Cost of Solar Leasing vs Buying Solar Panels
When it comes to renewable energy, one of the most popular options is solar panels. When installing solar panels, you’ll have the option of buying or leasing them. We do not recommend leasing solar panels because, typically, it will cost more in the long run.
Solar leasing companies have been known to have hidden costs and caveats, such as installation costs, third-party charges, and more. Most leasing companies require you to purchase solar equipment at the end of the initial lease term, which can be very costly.
Buying solar panels upfront allows you to start saving money immediately without any extra charges or fees. The True Cost of Solar Leasing vs. Buying Solar Panels reports further outline the risks associated with leasing and how to make the most of your renewable energy investment.
Know the Legal and Financial Implications of Solar Leasing
When installing renewable energy, you’ll have the option of buying or leasing solar panels. We do not recommend solar leasing because in the majority of cases. As a solar lease is essentially a long-term system rental, you could be stuck with a hefty monthly payment with no option to own the design as you would with a purchase.
Additionally, you could be tied into a rigid agreement with no explicit exit clause. It could cost you more in terms of end-of-lease fees. It could even prevent you from selling your property in the worst cases. Therefore, you should carefully research and understand all legal and financial implications before signing up for a solar lease.
Buying vs. Leasing Solar Panels
Leasing solar panels can often be more expensive than outright buying, leading to a poor return on investment. Therefore, we recommend buying, not renting, when installing renewable energy. Contact your local solar energy experts for an assessment and take advantage of cleaner and cheaper energy today.
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