If you are thinking about investing in solar panels to reduce your utility bills, you may be wondering whether it makes more sense to buy or lease the panels that will generate electricity on your property. The answer depends on your particular situation, but this article will help you figure out the best option for you. After all, it’s in your best interest to make the right choice and save money where you can!
The Advantages of Owning a Solar PV System
Own Energy Production:
By owning a solar PV system, you can take advantage of its energy production for as long as you own it. This means that you won’t have to pay utility rates again if you want to use electricity from your solar panels.
Solar Incentives & Tax credits:
If you buy a solar power system, you can take advantage of any tax credits, rebates, and other incentives. You can be eligible for a federal solar tax credit of 26% of the total cost moreover, State-level tax credits may also be available.
Increased Home’s Value:
Having solar panels installed on your roof can increase its value by up to $10,000 as per your installed system. This is because many potential buyers love solar already installed.
Solar power systems can help you save money on your utility bills for as long as you own your home, even if you don’t use solar energy directly. So, you will be able to keep more of your money in your pocket by using less electricity from utilities.
Disadvantages of Owning Solar Panels
High Upfront cost:
The biggest disadvantage to buying solar panels is that they are expensive. The initial cost is a bit high for an average-sized home system, which can be difficult for some people to afford.
Low ROI if you sell a home:
If you sell your home, it’s unlikely that you will be able to recoup all of your initial investment in solar panels.
Responsibility for maintenance:
If you own solar panels, you are responsible for maintaining them yourself. If something goes wrong with your system, it’s up to you to fix it.
The Advantages of Leasing
Leasing a solar system is also an option for those who want to go solar but don’t have enough cash on hand to buy one outright. The advantages are as follows.
Minimized Upfront Costs:
The main advantage to leasing is that it allows you to go solar without having to shell out thousands of dollars for an initial investment. This can be especially attractive if you don’t have a lot of cash on hand, or if you aren’t sure how long you plan on staying in your home.
Another advantage to leasing is that it requires very little maintenance on your part. If Anything require maintenance, will be fixed by the company you lease from, so you don’t have to worry about making repairs yourself.
Fixed monthly payments: One of the biggest advantages to leasing is that it comes with fixed monthly payments, making budgeting for your energy needs much easier.
Disadvantages of Leasing
No Handsome Savings:
While you may not be able to write off your lease payments on your taxes, leasing is still an expensive option compared to buying. In fact, in some cases, it can cost up to twice as much as buying over time!
When you lease, you’re essentially signing a contract that binds you to pay for at least 15-20 years of electricity at fixed rates. You cannot get rid of that.
Selling of Home is not easy:
Leasing is not transferable in some cases, so if you want to sell your home, you’ll have to pay off your lease before doing so. Buyers hesitate to purchase homes with leases.