You may be on the fence about buying or leasing a solar panel system for your home. A lease agreement can look very enticing – low to no upfront costs, a 20-year term agreement and a lower electric bill.
But is it really that great of a bargain for you? Here is why owning a solar panel system is better than leasing one.
Ownership: Owning your system will pay for itself after 20 years, sometimes even less. There are also financing options available for a $0 down payment. You will reap all the long-term benefits from owning your system, because it’s yours forever. And if you are grid-tied, you have the potential to have the electric company pay you for electricity!
Offsets: When you lease, you can’t qualify for:
- – federal Investment tax credits;
- – state tax credits;
- – cash rebates and other incentives.
Increase in Home Value: According to the study, “Exploring California PV Home Premiums,” the value of a home increased about $5,900 for each kilowatt that an array generates. The average solar home generates between two and five killowatts. That’s a potential increase of $11,998 to $29,500 – pretty much paying for the system itself, all while saving you money on powering your home.
Fewer hassles when selling home: Just because you lease the solar system doesn’t mean it’s easy to move it when you sell it. The potential homebuyer might not want to take over your lease.
Legalities: The default clause on a solar lease can be tricky. A lot of times, if you are late on your payments, the loan company has the legal right to remove your solar system and then sue you for the remaining balance.
Don’t make the mistake of leasing and paying potentially up to three times what it would cost to own your own power system. At Aztec Solar, we have low, affordable payment options to make your solar dreams a reality.