You can lease solar panels to put in your home. Be aware of the potential drawbacks and the costs. If you read this article, you will be able decide if leasing the equipment is right for yourself. You will also find this option convenient.
Leases at a cost
There are many things to think about when leasing solar panels. The monthly payments can be much lower than purchasing them in full. But leasing solar panels comes with some disadvantages. These include the inability to qualify for any rebates, incentives, or federal subsidies. Lease companies can also make money by making monthly payments, as well as any incentives that the solar panels offer.
Your home's value will decrease, so you will have to pay less to get solar panels. Solar panels will reduce the value of your house and make it more difficult to sell if you don't want the lease. Buyers are also concerned about solar leasing and may lower the price to avoid them.
Benefits of leasing
Leasing solar panels is an option for those who don’t want to spend the full cost of the system. This arrangement has no upfront cost and doesn't require maintenance. Leasing companies also offer special deals for first-time customers. A solar company will handle the installation, so you can enjoy the benefits of not having to worry about it. Leasing them may mean that you lose some control over the aesthetics and location of the panels.
The main benefit of leasing solar panels, is the fact that you can reduce your energy bills over time. Depending on the size of your system, you could save anywhere from 15 to 40% of your monthly utility bill. Lease solar panels can allow you to monetize solar energy in the SREC markets.
Leasing comes with some drawbacks
You are not the only one thinking of leasing solar panels for home. Solar leasing has its downsides. One of the disadvantages to solar leasing is that you will have to lease solar panels for a long time. You may not be able sell them when you sell your home. Solar leases could also hinder your ability to refinance.
Another drawback to solar leasing is that you don't get to claim tax incentives. The solar company will own the panels so you can't claim the 26% federal tax credit. You will also be required to pay much higher utility rates than for traditional loans. Consider leasing solar panels for your home. A tax professional will help you determine if you could qualify for a higher tax credit.
Leasing is an option?
If you're considering solar panels for your home, you should know that leasing them from a solar lease company can be risky. Since the solar lease company wants to make a profit, they may try to tie your hands in a long-term agreement in order for them to make as much as possible. If you decide to sell your home, you may need to pay the remaining lease payment or find a buyer willing and able to take over the lease. In addition, you will likely have to lower your home's price in order to attract potential buyers. Your credit score will also be affected by leasing solar panels. This will make it more difficult for you to qualify for a home loan in the future.
You don't have pay up front for solar panels when you lease them. Leasing agencies will handle federal taxes and other maintenance costs. This is particularly advantageous for people who don't qualify for federal tax incentives or have poor credit scores. If you can qualify for a loan, however, financing solar panels is the best option for you. This will not only save you time but will also increase the price of your home.