Pros and Cons of a Solar Panel Lease
A solar panel is an excellent investment for regions that experience frequent power outages. It doesn’t just allow homeowners to benefit from lower energy costs and provides them with an alternative in case of emergency.
However, solar panels weren’t always a viable option for everyone. In fact, they were primarily used commercially and were far too expensive for homeowners to purchase. This led to the creation of solar leases, which are popular today.
Despite the solar panel cost declining by a considerable rate, there are still many who can’t afford the entire setup. This leads to a solar panel lease which helps them reap the benefits of the solar panel without incurring a significant cost.
Get A Free Solar Quote NowWhy Solar Panels?
Why are solar panels becoming so popular? Is it simply because they are a cheaper alternative?
They Are Less Harmful
Solar panels are far less harmful to the environment than non-renewable energy resources. They do not deplete at a greater rate than their renewal and don’t release toxic chemicals affecting our ozone layer.
A solar panel lease allows homeowners to significantly reduce their carbon footprint and subsequent effects on the climate. Since solar energy is generated through panels that absorb the energy from the sun's heat, it is a much more reliable and safer form of energy production.
They Are Less Expensive
A solar panel lease may seem costlier initially, but it is much less expensive in the long run. Solar panels are a great solution if your power bill has led to distress over the past few years.
Using batteries to store energy, you can switch all your energy requirements onto the panels. This means you don't have to invest in anything extra after the initial cost, plus some maintenance over the years.
They Can Add to the Value of Your Home
Prospective buyers are forever looking for ways to make their life easier than it was before. For them, existing structures put into place for solar panels can ease their transition into using the same for lower costs. This makes your home more attractive to a prospective buyer.
If you want to raise the value of your property, a solar panel lease and usage can make your home solar panel friendly. This allows future house owners an easier installation and makes them more willing to invest in your home should you choose to sell it.
The ABCs of a Solar Lease
What is a solar panel lease, and how does it work?
One of the most common forms of solar panel lease falls into the residential category. This is whereby solar panels are rented from a solar lease company, and a monthly rate is paid in return. It means you aren’t buying the solar panels but can still use them without paying for the entire setup.
Solar panel leases work differently depending on your requested kind of lease and your chosen company. For some leases, the bills are generated according to the kWh of solar energy produced; however, for most, the charging remains the same each month.
If you are looking for a solar panel lease, go through the terms and conditions and clarify the payment process before proceeding. For some solar panel companies, clients are billed at a greater rate if the solar panel does not produce as much energy as it did in the previous months.
Pros of a Solar Panel Lease
If you are considering investing in a solar panel lease, congratulations! You are one step ahead of everyone who still relies on traditional energy sources.
Here are some important benefits to note:
Low Commitment
One of the most significant benefits of a solar panel lease is its low commitment. You don’t have to worry about sunk cost; it is cheaper than a first-time investment. As you sign a solar lease with a solar power company, you will pay far less than someone who gets the entire system.
This means that you save in both the short and long term. Since most solar panel setups start at $30,000 and can get as expensive as you want, a solar panel lease takes the pressure off. You can even get charged with the amount of solar energy generated to decrease the monthly cost.
Easier Upkeep
Another significant benefit of a solar panel lease is that it is easier to maintain. You don’t need to stress about maintaining solar panels as much as other renewable forms of energy generation. With a solar panel lease, the company takes care of everything.
Anytime you experience a problem with the solar panels, the solar panel company will be responsible for the repairs. This means you just need to call them, and they will be there at your service, fixing your solar panels and maintaining them at a minimal cost or none at all!
The Obvious Cost Advantage
We get our solar panels for the obvious cost advantage, which is the most significant part of our monthly expenses. Everyone dreads their energy bill, especially during the summer when air conditioning systems are taking a major hit.
The more you rely on solar panels, the less your bill. Depending on where you live, solar power generation can suffice for most of your electricity requirements. After a while, it may be possible to abandon the power grid entirely.
Cons of a Solar Panel Lease
A solar panel might offer lesser advantages than buying an entire system, by leasing solar panels might offer more secondary benefits. You should consider; Here are some things you should consider;
A Solar Panel Lease Isn’t Permanent
A solar panel lease isn’t a permanent solution to your energy-related concerns, and buying an entire system might be much more expensive. Still, it can quickly provide significantly lowered costs for the next couple of years, allowing it to compensate for the initial expense.
Solar panels last for a long time. A solar lease would add the extra cost of the lease, but your solar panels would take away all of the expenses. So, you receive reduced bills and don’t even need to pay for the solar panels. The energy produced by the solar panel is your own, so that you can sell or store it.
It’s Hard to Let Go
Most solar panel leases will keep you locked in a contract for 20-25 years. Make sure that if you are getting a lease, you are sure you will stay in the same home for the next few years. Otherwise, the new owners might need to pick up the lease where you left it off, which may push them away from the house.
A Solar Panel Lease Might Not Be Sufficient
Certain restrictions in your solar panel lease contract may be mentioned, making the energy production insufficient for usage. This includes restrictions on storing energy. Make sure you carefully read the contract before signing off on anything.
Things to Consider Before Getting a Solar Panel Lease
Before finalizing the decision, ask yourself if a solar panel lease is ideal. Do you need it, and do you live in a perfect location to support solar power generation? You need to consider your current energy consumption, your long-term expenses, and whether there’s room for lease payments.
Also, ask yourself if you can afford a solar panel system. However, if a solar panel lease is something you are set on, make sure you look for the best and most reliable company for the purchase.
Final Thoughts on Solar Panel Leases
The first step to a solar panel lease is figuring out if you are eligible. Energy Bill Cruncher can help you crunch those numbers, determine average costs by region, and calculate whether a solar panel lease is ideal for you and your household.
They also work with the best installers and can connect you to reliable solar panel lease companies offering you the best and most affordable deals. Carefully consider all aspects of the lease before signing off on anything!
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