6 Reasons Why You Should Not Lease Your Solar Panels
Think about the various ways you can secure solar panels on your home and use the energy from the sun. While you may consider leasing the panels to lower upfront costs, some disadvantages arise that you should know about. There are several reasons why you should not rent solar panels.
6 Reasons Not to Lease Solar Panels
If you can pay cash for solar panels, that is by far the best option. You will instantly see a significant return on your investment with a minimized monthly utility bill. But financing to own the solar panels is an excellent alternative if you do not have the cash to put down.
Let’s look at the disadvantages of renting your solar panels:
- You are not eligible for tax credits or incentives. If you buy solar panels, you can receive several credits and benefits. For example, if you purchase solar panels in 2022, you can expect a 26% tax credit. Also, solar panel owners are eligible for SRECs or Solar Renewable Energy Credits. When you lease the panels, you do not have access to any of these benefits.
- Rented solar panels do not increase your home’s value. The first question a real estate agent will ask when you are selling your home is if you lease or own the solar panels. Unfortunately, you cannot factor rented solar panels into the selling price of a home.
- It is expensive to move solar panels. You may enter into a rental agreement for solar panels, thinking that you’ll just move them if you ever change homes. Unfortunately, it costs around $200 per panel to move, racking up the price quickly.
- Homes are harder to sell with leased solar panels. The last thing a potential buyer wants to hear is that the solar panels are leased on the home they are considering. If the panels are not owned, do not include them in the showing of the house.
- You will not get a return on your investment. Even if you save money on your energy bill each month, that money will go straight to the rental payment.
- You will receive lower-quality maintenance with leased panels. If you do not own the solar panels, you do not have access to solar panel warranties. If your system needs maintenance, it is up to the company you are leasing from to pay for the repairs, which can lead to lower-quality care that you have no control over.
If you want to get the biggest return on your solar panel investment, you should buy a solar energy system. You will always come out ahead with buying vs. renting solar panels. For financing options available for purchasing solar panels, give our pro team at New Day Solar a call for a free consultation: (855) 444-6329.
Schedule a consultation
Find out more with an honest, no pressure consultation with our team of solar experts.