5 Common Questions about Solar Leases Answered - What to Know
As the trend to go green continues to increase each year, people are looking for ways to leave behind unsustainable activities for more sustainable ones. For example, some people might opt for electrically powered cars over diesel or petrol ones, while others try to limit their waste of resources.
If you're a homeowner, you might be interested in utilizing renewable power to save energy. This means that rather than opting for coal-powered electricity, you'd opt for solar energy instead. Fortunately for you, with the advancements in technology over the years, solar system prices are dropping, making it affordable for consumers. One of the ways you can have solar panels installed on your property is to lease them. If you've never had anything like this done before, chances are that you'll have questions that need answering.
In this article, we’ll answer five common questions regarding solar leases:
1. “What are solar leases?”
Put simply, a solar lease is a form of renting service from a company, albeit you're only paying a set amount of price for its production of electricity. While the "rent" is what you will pay for the power, you can expect up to a twenty percent reduction in costs compared to paying for electricity from a utility company.
2. “How long do the leases last?”
The length of your lease will depend on your agreement. However, most contracts will usually fall anywhere between 15 to 20 years. After the expiry date, you can either purchase the panels for a heavily discounted price, renew the lease, or have the panels removed from your property.
3. “Are there any things I'm responsible for?”
Other than paying for the leases, there isn't much that will be under your responsibility. You don't have to worry about any down payment, and any maintenance and repair needed will be covered by the company.
If you maintain a connection to the main electrical grid and you use some of it, know that you'll still pay some fees. That said, if you are producing more power than needed and are feeding that back into the grid, some places award you with some money as well.
4. “What are the advantages of leasing solar panels?”
The most significant advantage that comes with leasing panels is that you don't have to worry about upfront costs, which can be well over tens of thousands of dollars. In other words, you don't have to be earning millions every year to have it installed for your home! Monitoring and repairing are also taken care of by the panel providers, and so is all the paperwork required.
As a result, you will get to enjoy solar panels for your home without all the hassle and high costs, making it a desirable option for any homeowner wanting to opt for solar energy.
5. “What are the disadvantages of leasing solar panels?”
One of the significant disadvantages of leasing solar panels is that you won't be qualified for tax incentives. Any incentives that the government provides won't go to you, but to the solar companies instead because they're the primary owners and you're merely "renting" the panels.
When it comes to maintenance and repairs, you might not be receiving the best in this aspect either. No matter how well the panels are performing, you're still paying a fixed price.
Leasing solar panels are the go-to option for you if you don't have much money to spend but still want to opt for solar energy. Not only is leasing them extremely affordable, but after the end of the contract, you're also given the option to own them for a reduced price.
Are you looking to install solar panels on your property in California? Get in touch with us today to find out how we can help!