Leasing solar panels is a fantastic way to reduce your carbon footprint and save money on energy bills. However, before you sign your lease agreement, there are a few fundamentals you should be aware of. In this blog post, iRoofers of America will discuss the most important things you need to know about leasing solar panels. We will cover topics such as how leasing works, the benefits of leasing, and what to look for when choosing a solar lease company.
What is a solar lease, and how does this work?
Solar leases are somewhat comparable to vehicle leasing, a kind of third-party ownership. In a solar lease, a third-party owner (such as a solar firm) installs solar panels on your property and then sells you the power they generate at a fixed monthly price. Companies determine this rate and include it in your contract based on the anticipated annual output of your solar system. Your lease period will also be fixed, usually between 20 and 25 years. You have three options:
- Buy your system at market value.
- Remove it.
- Extend your contract (usually for one to ten years) and make monthly payments.
Benefits of solar leasing:
There are several benefits to leasing solar panels:
- It can significantly reduce your upfront costs. Leasing companies generally cover the cost of installation and maintenance, so you don’t have to worry about those expenses.
- It can provide you with a predictable monthly payment, which can help you budget for your energy costs.
- It can help you take advantage of the federal solar tax credit, which allows you to deduct 30% of the cost of your solar panel system from your taxes.
The thing to consider before solar leasing:
Before you sign a solar lease, you should consider a few things.
- Make sure you understand the terms of the lease. Most leases are for 20 years, so you’ll need to ensure you’re comfortable with that commitment.
- Find out what happens at the end of the lease. Some companies will allow you to purchase the system at a reduced price, while others will require you to return the equipment.
- Be sure to read the fine print. Leases often include provisions that could be unfavorable, such as an early termination fee.
- Compare different offers. Leasing solar panels is a big decision, so compare various offers before committing.
Should you get a solar lease?
Although “free solar panels,” also known as a solar lease, seem like a wonderful offer, there are only a minimal number of circumstances when this is the best choice for going solar. When neither the federal tax credit nor a solar loan is available, a solar lease is the only option that makes sense.
Have you been considering switching to solar to reduce your energy expenditures, but you’re unsure how to pay the initial fees? iRoofers of America has you covered!
We provide financing alternatives for solar panels, gutter, and roofing solutions in North Richland Hills. We can assist you whether you wish to reduce your energy expenditures or need a new roof!