Lease vs. Finance: What is the Best Solution for Your Solar Power System?
Solar panels offer an effective way to reduce your energy expenses. In order to enjoy these benefits, you will need to make the investment for the solar materials to be installed on your home. There are many solar companies out there offering different products and services. So, how do you decide on the best solar choice for you and your family?
Lease vs. Finance
The main difference in these two options is the ownership of the solar system. If you choose to lease the solar panels, it means that you don’t own the equipment. Instead, a third-party holds ownership of the equipment, and you can use the panels while you are paying the lease agreement, which is normally 20 years. You would not be able to take advantage of the 30% Federal Credit and many of the leasing contracts contain an escalator clause, which means your lease payments can increase every year, further reducing your savings
On the other hand, buying a solar power system gives you full ownership of the system. Choosing ownership means that you can enjoy the benefits of the equipment and once the system is paid for, you will enjoy free electricity for the life of your solar system. The solar modules are warranted by the manufacturer for 25 years! If you decide that ownership is right for your family, then you can pay for the system outright or look at financing options. Most financing options offer 0 down, 12 year loans, with no escalator and there is no pre-payment penalty.
Benefits of Purchasing Your Solar Panel System
Leasing does not give you a long-term investment for your home. If you want to maximize all of the benefits of your solar system, then the best solution is to have ownership of the equipment. Once you have paid for the system, you have the benefit of free electricity for the life of the solar system.
The purchase of a solar power system could help you reduce your tax liability for the year the system was installed through a tax credit. There is a 30% Federal Tax Credit that is based on the total amount that you paid for the solar system available. Additionally, business owners can experience tax benefits by using the solar system as a depreciable asset.
Another financial benefit of a solar power system is that it increases the value of your home. If you decide to sell in the future, then you can ask a higher price tag because of the solar panels that are installed. It is attractive to most buyers to purchase a home or business with no electric bill!
Our team at New Day Solar can help you find the best solar solutions for your home or business. If you are interested in learning more about the benefits of buying your solar panel equipment, then we are here to help! Call us at: (855) 444-6329 or visit us at www.newdaysolar.com.