Defining Leasing Solar

When homeowners lease panels, they buy electricity from a company who owns the them. The price a lessee pays may be lower or the same to what the utility would charge for electricity.

These are called escalation and de-escalation clauses. Solar leasing terms differ and permit homeowners to begin their leasing program with no money down. These contracts are available in increments of twenty, fifteen or ten year contracts.

Homeowner’s are given the choice to purchse the solar system, if not, fully own the solar system outright at the end of the lease. Leasing a solar system for your residence is not the ideal idea. Despite the heavy advertising of corporate interests, here’s why. Ensure you do deeper research prior to leasing solar.

Complex Financial “Tool”

A lease is a complex financial “tool”. Unfortunately, it’s complex to assess what the real price of it is. Clean energy leasing companies are money managers who take advantage of federal and state renewable energy subsidies to earn higher profits than their cost can earn sitting in real estate or stock market investments at the moment.

Eventually signing a multi-year leasing contract is what takes place. Fifteen years is the typical contract length that’s not easily transferable if you sell the house.

Potential buyers maybe weary of the leasing contact that they may inherit if you sell you residence. The buyers must complete credit requirements and make payments on the remainder of the lease term, which comes to about 10-20 years.

Lease payments increase on a yearlyl basis at about 3.9% per year for 15 years is a norm. If your electric bill does not exceed $110, this program makes no sense financially. If you don’t have good credit, you’ll pay more than the advertised price.

You don’t own the solar panels. You’ll return them after 15 years or purchase them at the end of the lease. The leasing company gets the rebates, incentives and federal tax credit for the purchase of panels. You may choose to buy the solar panels after the end of the lease.

Perks and advantages

Buy what you can afford to purchase, and with the savings on your electrical bill, add more later.

Receive all the benefits from owning your own solar system. It increases the value and marketability of your residence. State incentives for solar, utility rebates, and federal tax credits for 1/3 the cost of a system go to the owner of the system.Buying panels provides flexibility. Lease contracts might specify a certain installation size, but when owners buy their own system, they aren’t bound by details of equipment or power production.

If you want to join the clean energy revolution, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years. For more information about solar, don't forget to visit our solar blog section for guides and articles.

HahaSmart Blog - More Solar Tips and Guide
HahaSmart News - Stay Informed
Your Solar Incentives - See Credits and Incentives in Your Area
Check Your Home's Solar Price - See How Much You Save
Register Now - Unlock The Lowest Solar Prices in Your Area