Is it Better to Lease or Finance Solar Power Equipment?
Are you looking for answers to reduce your monthly spending on utilities? Solar panels offer an excellent solution for your home! But you need to be prepared to make the upfront investment for the materials that will be installed.
A quick search online will uncover many companies offering a variety of different services and products in the industry. As a homeowner, how do you choose the right solution to meet the needs of your family?
Two Options for Acquiring Solar Equipment
You’ll find that solar power companies typically offer one or both of these options for obtaining the solar panels that are needed:
- Leasing: When the equipment is leased, it means that a third-party maintains ownership of the solar panels. As a homeowner, you need to pay a monthly fee for the lease to use the equipment. You don’t own the solar panels. Instead, you are basically “renting” the equipment, with a standard lease term that lasts for 20 years. The payments continue for the duration of this time.
- Purchasing: On the other hand, you can gain full ownership of the solar power system by buying the equipment. If you don’t have the money on hand to pay cash up front, then financing is an option that should be considered. Once the system is paid in full, it means that you will continue enjoying free electricity for the duration of the equipment life. Many warranties last for 25 years! Often, these loans are structured for a 12-year payment plan, which means that you can enjoy free, clean energy for 13 years (or more) after you are finished with the payments.
Ownership is the Best Solution
As mentioned above, leasing means you will always need to pay a fee for the use of the solar power system. In some cases, the leasing contract includes an escalator clause, meaning the payments can increase with time. Plus, you will miss out on potential tax credits and other benefits offered on a state and federal level.
Most people find that buying the equipment is the right answer. This long-term solution helps to increase the value of your home and reduce your monthly expenses. For more information, reach out to our team at New Day Solar. We’ll help you choose the right equipment and solar panel design to maximize your results: (855) 444-6329