How To Lease Solar Panels

4 minutes if you were to ask your neighbor who installed solar five years ago about how they financed the system it s likely that they re leasing their solar panels from a large national solar provider like vivint or sunrun it was only recently that solar ownership options either buying the system with cash upfront or financing through a loan became the more popular.

How to lease solar panels.

Solar leasing has quickly become the most popular way of helping homeowners reap the benefits of solar energy. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. Because your house serves as. 1 it gives you the same dependable power as solar ownership but with the added benefits of a professionally managed and maintained system daily monitoring and a solar production guarantee.

If you lease instead of buy you are adding layers of expense and giving away the federal tax credit state incentives and utility company rebates that you might otherwise benefit from. You ve saved energy lowered your low utility bills and felt the undeniable pleasure of sharing these perks when the topic of solar came up with anyone who would listen. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. While leasing a solar system in some cases might not be a bright idea reducing your carbon footprint and installing solar panels certainly is.

You lease the solar panels and receive all the energy they produce but do not own the panels. A solar lease gave you the opportunity to run on sun without having to pay the 11 000 14 000 that it costs to install panels in one fell swoop. Solar leasing is a lot like a lease on a car. The main practical distinction between buying and leasing a solar pv system is in ownership.

You make monthly payments for the panels and are entitled to all the electricity they produce. Most lease providers provide the option to buy the panels at the end of the lease term at a discounted price. The solar farms we develop require large amounts of land where we will ultimately place tens of thousands of solar panels. Some companies also offer power purchase agreements or ppas.

In a lease you pay to rent the solar power system typically for about 20 percent less than you were paying for electricity explained freedom forever solar. According to the national renewable energy laboratory nrel homes with solar panels sell 20 percent faster and for 17 percent more than the equivalent non solar homes. If you need to finance your solar panel purchase the most cost effective way to do it is to use a home equity loan or a home equity line of credit.