What is the difference between buying and leasing a solar panel system?
In regards to leasing or buying solar panel system, the most suitable choice for you and your energy needs will depend on your financial targets and goals. Let’s take a better look at whether you should buy your solar panel or lease solar for home.
Should I buy or lease solar panel system?
No matter whether you buy your solar panels or lease them, you’ll still get the same clean solar energy powering your house. However, the finances and ownership of your solar power system will change depending on the financial tool you use to purchase it .Let’s now discuss the variations between solar system ownership, leasing, and Purchase Power Agreements (PPAs.)
Buying solar panel system
Buying solar panels is a good choice when you’re looking to:
1. Be the owner of your solar panel system
2. Maximize the financial advantages of solar
What do we imply by “maximizing the financial advantages of solar”? Mainly, if you happen to buy solar panels outright, with one large upfront cost, you will see more financial savings in the long run. That is because you will not make monthly payments for years to your solar supplier until you finish paying the whole system cost and, instead, will own the system from the start. As a solar power system owner, you can reduce your electric bill by utilizing the power your solar system produces. Buying a solar panel system will give you all the benefits of solar incentives provided by the Government. We suggest all people should think about buying solar for home without any financing as when you lease your solar energy system, you have to keep paying the system owner and the owner gets all the solar incentives advantages.
Take into account that you can even finance your solar panels through a solar loan. A solar loan will still provide the house equity and tax incentive benefits that include owning panels without the high upfront cost of outright solar system ownership.
Leasing your solar panel system:
Key advantages of solar lease or PPA are:
– No maintenance duty
– No upfront price
– Lock in your utility rate
Are you interested in reaping the advantages of renewable energy, but don’t want to pay $6000-$7000 upfront cost for owning the solar panel system? If that suits you, leasing solar panels or purchasing power via a PPA (Power Purchase Agreement) may be a choice. Here’s why you may want to lease solar panels instead of buying or financing them.
Both a solar lease and PPA are reasonably priced, simple methods to enjoy solar energy without a big upfront investment. With both leasing and PPAs, you do not pay any upfront prices on your panels, and you can save on your utility rate. Moreover, you don’t have to worry about the installation, maintenance, and warranty.
What is the difference between a lease and a PPA?
Leases and PPAs are fairly similar just with one huge difference: with a solar lease, you are paying a fixed month-to-month payment for the solar panels and the system equipment, and with a PPA, you are just paying for the solar power produced by the solar panels, which will differ from month-to-month. Both choices will help you lower your expenses, but availability varies by city and state.
Make your decision
Whether you choose to pay upfront or lease solar panels or select a solar PPA, solar will make it easier to reduce your carbon footprint and help everybody get closer to a more viable planet. Our team at AYKA Solar is right here to help. We will take a look at your financial targets and preferences, current price for energy, and energy utilization that will help you choose the correct solar panel system. Contact us today!