Will Leasing Solar Panels Save Me Money

Pay little or nothing and save hundreds of dollars per year on average.

Will leasing solar panels save me money.

The first step to understanding how much solar can save you is to calculate how much you are currently spending on electricity every year. By leasing a solar power system you can reap the benefits that come with it without having to pay a lot of money upfront to get it. For example the average annual electricity use required for a u s. You receive free electricity for the life of the solar energy system usually 25 to 30 years.

Rising property values lowered utility costs and the federal tax credit all ease the upfront costs of installing solar panels. Solar panels and solar panel systems will save you money and bring a return on your investment in no time. You make monthly payments for the panels and are entitled to all the electricity they produce. 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.

Some companies also offer power purchase agreements or ppas. Any honest solar company should tell you that if walmart or a residential developer is interested in buying or leasing your land a solar lease can not compete from a value perspective. Decide how you re going to pay for the system purchase lease or what s known as a solar power purchase agreement in which the consumer buys the power but doesn t own the system. However for farmland owners that have historically used their land for agriculture a solar ground lease offers a more profitable and reliable income stream.

According to doug snower president of an alternative energy company wind free the discussion of buying versus leasing in solar technology is not much different from the same discussion we have around leasing. Solar leasing is a lot like a lease on a car. Advantages of leasing solar panels. If your electric rates are high you ll pay off the cost a lot sooner according to the solar energy industries association.

The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. Household is 10 972 kilowatt hours kwh. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. If you re interested in solar energy you aren t alone.

Most lease providers provide the option to buy the panels at the end of the lease term at a discounted price. Solar leasing and ppas account for over half of this total and there are some excellent reasons why solar leasing has. You can save between 40 percent and 70 percent on electricity costs over the lifetime of your solar panel system depending on your property and the incentives in your state.