Pros and Cons of Leasing Your Solar System

When you decide to go solar, it’s a big decision. Solar companies know getting solar panels a significant investment, so they do their best to provide homeowners with options that make it affordable. The primary way they do this is by leasing solar panels to homeowners so they can save on their energy bills without the large, upfront cost of purchasing solar panels. 

We acknowledge there are pros and cons to leasing and owning your own solar panels. Our goal is to educate you so you can make the best decision for your home and finances that aligns with your goals.

Pros of Leasing Your Solar Panels

  1. Leasing makes solar energy accessible to more families and businesses. Many people may want to take the step of going solar to help reduce their environmental impact and save on their own energy bills. But, they don’t have the cash for the upfront cost or don’t want to finance it. Leasing makes solar available to a much wider demographic with little to no upfront cost.
  2. No maintenance! If you lease your solar panels, the company you lease them from will be on the hook for any maintenance costs, not you.
  3. Save on your energy bills. Whether you lease or buy your solar panels, you’ll still see your energy bill decrease. Depending on where you live, you may even have the opportunity to earn credits for excess energy gathered from your panels.
  4. You might be able to buy them at the end of your lease term. If leasing is the best point of entry for you to get into solar, you may be able to buy the panels at the end of your lease term. Make sure you ask about this option as you’re shopping around.

Cons of Leasing Your Solar Panels

  1. If you have leased solar panels on your home and you go to sell it, the lease can complicate the sale of the home. Moving the panels to your new home can be complicated, expensive, or possibly not an option at all. And if the buyer isn’t interested in taking over your lease, you may have to break your contract.
  2. You’re not eligible for the same tax incentives and rebates if you lease solar panels for your home. Those incentives are there to help offset the initial cost of a solar install, so you don’t get them when you’re leasing.
  3. You’re not gaining an asset the same way you would be if you bought the solar panels. At the end of the day, you don’t own the solar panels, and you still have to pay for them every month. You may not feel the burden of that payment because of the money you’re saving on your utility bill, but you’re still paying for something you don’t end up owning.

Going Solar is Good for the Planet, Good for Your Wallet

No matter what you choose, going solar is a decision that helps our communities and our world. With a national and global emphasis on renewable energy, you can know you’re doing your part when you go solar. If you have questions about which option would be best for your situation, we’d love to chat!

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