Will Leasing Solar Panels Save Me Money

The first step to understanding how much solar can save you is to calculate how much you are currently spending on electricity every year.

Will leasing solar panels save me money.

According to doug snower president of an alternative energy company wind free the discussion of buying versus leasing in solar technology is not much different from the same discussion we have around leasing. Household is 10 972 kilowatt hours kwh. Decide how you re going to pay for the system purchase lease or what s known as a solar power purchase agreement in which the consumer buys the power but doesn t own the system. Solar leasing and ppas account for over half of this total and there are some excellent reasons why solar leasing has.

Solar panels and solar panel systems will save you money and bring a return on your investment in no time. Rising property values lowered utility costs and the federal tax credit all ease the upfront costs of installing solar panels. Advantages of leasing solar panels. Solar leasing is a lot like a lease on a car.

If you re interested in solar energy you aren t alone. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. For example the average annual electricity use required for a u s. Most lease providers provide the option to buy the panels at the end of the lease term at a discounted price.

Some companies also offer power purchase agreements or ppas. From 2015 through 2017 homeowners in the united states installed 6 909 gigawatts worth of rooftop solar panels which was double the amount added in the previous 10 years 5. You lease the solar panels and receive all the energy they produce but do not own the panels. Any honest solar company should tell you that if walmart or a residential developer is interested in buying or leasing your land a solar lease can not compete from a value perspective.

If your electric rates are high you ll pay off the cost a lot sooner according to the solar energy industries association. You make monthly payments for the panels and are entitled to all the electricity they produce. However for farmland owners that have historically used their land for agriculture a solar ground lease offers a more profitable and reliable income stream. You receive free electricity for the life of the solar energy system usually 25 to 30 years.

By leasing a solar power system you can reap the benefits that come with it without having to pay a lot of money upfront to get it. Pay little or nothing and save hundreds of dollars per year on average. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company.