The Differences Between Buying and Leasing Solar Panels - What to Know
Solar panels are all-around fantastic investments. They provide a source of clean and sustainable energy, meaning that they’re good for the planet, and they’ll pay off in the long run, meaning they’re good for your wallet as well!
When choosing to go for solar panels to power your home, however, one question always pops up. Should you buy your panels or lease them from a provider?
In this article, we’ll go over both options and highlight the main advantages of each one. Continue reading to learn more about these two choices so that you can decide which one is right for you.
Option #1: Leasing Your Solar Panels
When you lease solar panels from a service provider—also known as solar leasing—you don’t have to pay for the upfront costs of having them installed. The service company will cover the labor, materials, as well as the maintenance costs associated with your project.
In exchange for this, you pay the provider for the electricity that those panels generate. These payments can be made monthly or in advance. Either way, you enjoy lower utility bills for the period that your lease remains active.
Option #2: Buying Your Solar Panels
On the other hand, purchasing your own solar panels means that you’ll have to cover all the associated costs that go with doing so. The main difference between this and leasing is that the solar panels are wholly yours from the get-go.
While this may be a pricier approach to clean electricity, it also means that you can eventually make back those costs as savings. Once you have reached this point, all the electricity that your panels generate beyond that will be entirely free!
So, how do I decide which one is right for me?
Well, it’s really just a matter of two things: One, how much you’re willing to spend upfront, and two, how long you plan on using the solar panels.
Think of the decision much like purchasing a home versus renting one. If you can afford one now, and believe that you will be utilizing it for long periods of time, then buying is the only logical choice. Doing so will also usually come with added benefits.
For solar panels, in particular, a set that is purchased from a reputable supplier can easily last 25 to 30 years. When you consider that the time period it usually takes to recuperate the costs as savings is usually between five to seven years, the decision represents a viable option in terms of your ROI.
Additionally, buying your panels also means that you can enjoy government tax credits as their use is highly incentivized. It becomes a win-win scenario that benefits several parties, including—and most importantly—the environment.
While buying solar panels does make sense, it’s still a hefty investment that might not be feasible for everyone. This is why the option to rent is available in the first place. Leasing represents a more accessible alternative without sacrificing the main benefit of utilizing solar power.
Ultimately, whether you choose to buy or lease, you’ll be doing yourself a favor. That, and the satisfaction that comes with knowing that your energy needs are coming from a renewable source, then there are hardly any drawbacks to doing so, if at all.
We sell and lease solar panels to homeowners in La Verne, California. Get in touch with us today to see how we can help.