Solar panels have become a prevalent electricity source because they are renewable energy. It is something made by the sun, which we are constantly surrounded by.
So many people are taking the initiative to get their electricity from solar sources because they see it as a way to improve the environment. It’s easy to be environmentally conscious when it doesn’t cost you anything.
There are some downsides to solar energy, though. Read on to find out whether you should lease or buy solar panels for your home.
Advantages of Leasing Solar Panels
Leasing provides an excellent option for those who wish to benefit from solar energy but need help to afford to purchase a whole system outright. Through leasing, the homeowner can access their solar energy needs without the high initial costs of buying the panels. Below are some advantages of leasing solar panels.
Little to No Upfront Cost
If you choose to lease, installing the solar panel system is provided with little to no upfront solar panel cost. This makes it a great option for those who are on a budget or don’t have the upfront cash to buy the system.
Maintenance Is Taken Care Of
The company that owns them is responsible for maintenance and repairs. You don’t have to worry about the costs or hassle of maintenance.
You don’t need to handle any regular maintenance or repairs the system requires. You can enjoy the financial and environmental benefits of going solar without any added stress.
Flexibility to Upgrade
It offers greater flexibility to upgrade to a larger, more advanced system at a fraction of the cost. Leasing also provides a more straightforward way to switch to a newer system. You don’t have to worry about disposing of outdated panels.
Disadvantages of Leasing Solar Panels
Leasing solar panels can be attractive to some, but there are some disadvantages to consider. For one thing, leasing panels are often more expensive in the long run instead of buying them.
Leases come with long-term contracts, and consumers may pay more over time due to interest and other fees. Know more about the disadvantages below.
No Ownership or Tax Benefits
Leasing may present lower upfront costs. However, you will not receive any residential tax credits and incentives. Also, you can’t get other federal, state, or local financial assistance.
Leasing companies usually retain ownership of solar equipment. They are responsible for maintenance, insurance, and monitoring.
Solar panel leases are typically long-term contracts, often lasting 20 years. This means you’ll be locked into a contract for an extended period.
Advantages of Buying Solar Panels
You can upgrade your home by buying solar panels and having them installed on your property. The advantage of buying solar panels is that you’ll own the system outright, which means you’ll be able to take advantage of any tax credits or incentives available for solar panel ownership.
You’ll also have more flexibility in adding additional panels or making changes to your solar energy system in the future.
Ownership and Tax Benefits
When you purchase solar panels, you own them, which means you can take advantage of tax credits and incentives for owning a solar system.
This includes a federal tax credit and state and local incentives, which can reduce the overall cost of the system and incur solar panel savings.
Potential Long-Term Cost Savings
The initial cost of purchasing solar panels may be higher than leasing, but the energy produced will be free for the system’s life. This will result in long-term cost savings.
Renewable energy sources such as solar panels are an excellent way for homeowners and businesses to save money and reduce their carbon footprint.
When you purchase the panels outright and successfully net meter with them, you will benefit from long-term cost savings as electricity costs become increasingly more expensive.
Another benefit of purchasing outright is the potential to earn money from the feed-in-tariff program, which can help offset part of your installation costs
More Control Over Your System
When you own your solar panels, you can choose the system’s design, components, and features to match your home’s energy needs best. You can also consider potential upgrades and repairs and make adjustments as needed.
Also, a solar panel upgrade or repair doesn’t require permission or reimbursement from your solar provider. You also avoid additional costs for maintenance and extra fees for removing panels, since you’re the one controlling your system.
Disadvantages of Buying Solar Panels
Buying Solar Panels can be a smart financial move in the long run, but there are some definite disadvantages to consider. One major disadvantage of purchasing solar panels is the up-front cost.
Another disadvantage of buying solar panels is that they require expert installation.
Significant Upfront Cost
The significant upfront cost of buying solar panels is the biggest drawback for many homeowners. The price can be a barrier for those who do not have the financial means to make the initial investment.
Maintenance and Repairs Are Your Responsibility
When you buy solar panels, you become responsible for maintenance and repairs, which can be costly and time-consuming. This includes cleaning the panels, monitoring their performance, and replacing parts to ensure the system operates efficiently.
Risk of Technology Becoming Outdated
As solar technology advances rapidly, there is a risk that your solar panels may need to be updated. This could affect their efficiency and potentially reduce their value, requiring you to upgrade your system to stay up-to-date with the latest technology.
Buy Solar Panels Today
The decision to lease or buy solar panels will depend on your circumstances. If you’re looking for an affordable way to start using solar power without a significant upfront investment, leasing may be the right choice.
On the other hand, buying may be the better option if you have the financial means to purchase solar panels outright and want to take advantage of tax credits and incentives.
If you enjoyed this article on choosing between leasing versus buying solar panels, check out the rest of our blog for more helpful posts!