Solar Lease vs Own
Making a choice between going with a solar lease vs owning your solar panel system outright is an important step in your path toward achieving energy independence.
Having a solid understanding of the advantages and differences of each option will help you make an informed decision that lines up with your current financial goals and long-term plans for your home or business.
The Basics of Solar Leasing and Owning
When considering solar energy, you can either lease your solar system or purchase it outright. Both options have benefits and drawbacks, but knowing how each impacts your savings, tax incentives, and property value can guide you in choosing the best path forward.
Opting to Go With Solar Leasing
Leasing a solar system is often appealing because of the low upfront costs. With a Power Purchase Agreement (PPA), you typically pay nothing upfront, making solar accessible for those with limited capital or less-than-perfect credit.
However, since you don’t own the panels, you forfeit valuable incentives including the 30% federal solar tax credit.
The Long-Term Costs of Leasing
Over time, the financial drawbacks of leasing become apparent. Lease payments continue even after the system has paid for itself, similar to renting a home.
Furthermore, modifying the system to meet changing needs isn’t an option, as the panels remain the property of the leasing company throughout the agreement.
Choosing The Path of Ownership
Owning your solar system offers the most financial benefits. As the owner, you can claim the 30% federal tax credit and any additional earnings from Solar Renewable Energy Credits (SRECs).
These benefits significantly reduce the overall cost of your solar investment, providing long-term savings and reduced impact on the environment.
Added Value to Your Property
When you own your solar panels, they become part of your property, enhancing its value. If you decide to sell your home, the solar system can be a major selling point, potentially attracting buyers interested in sustainable energy solutions and lower utility bills.
Financing your solar system through a home equity line of credit or a loan for solar installations allows you to enjoy fixed monthly payments.
Flexibility with Ownership
Ownership provides you with full control over your solar system. You can modify or expand your setup as your energy needs change so that your system continues to meet your requirements over time.
Tax Incentives and Financial Rewards
When you own your solar system, you retain all the financial incentives. These include the 30% federal tax credit, Maryland’s energy grant, and earnings from SRECs, making ownership a more lucrative option in the long run.
Consideration of Future Moves
Owning your solar system is advantageous if you’re planning on selling at some point in the future. As a permanent feature, the system can directly boost your home’s resale value.
With a leased system, the solar panels still provide the benefits of clean energy and lower utility bills. Potential buyers may also appreciate the immediate access to solar power without the upfront cost of ownership.
Your Path to Energy Independence
Taking control of your energy future starts with making a clear decision about how you want to secure your system.
Investing in solar energy, whether you lease or own, is an important step toward achieving greater sustainability and increased cost savings.
Making an Informed Decision
Weighing the good and bad of leasing and owning your solar system can better empower you to make a sound decision that best matches your financial goals.
Regardless of whether you prioritize immediate savings or long-term benefits, the right choice will dramatically improve your energy future by offering you greater control over its production and consumption.
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