Will Leasing Solar Panels Save Me Money

Pay little or nothing and save hundreds of dollars per year on average.

Will leasing solar panels save me money.

You can save between 40 percent and 70 percent on electricity costs over the lifetime of your solar panel system depending on your property and the incentives in your state. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. Advantages of leasing solar panels. If you re interested in solar energy you aren t alone.

You lease the solar panels and receive all the energy they produce but do not own the panels. Solar leasing and ppas account for over half of this total and there are some excellent reasons why solar leasing has. Solar leasing is a lot like a lease on a car. Rising property values lowered utility costs and the federal tax credit all ease the upfront costs of installing solar panels.

For example the average annual electricity use required for a u s. Household is 10 972 kilowatt hours kwh. Decide how you re going to pay for the system purchase lease or what s known as a solar power purchase agreement in which the consumer buys the power but doesn t own the system. By leasing a solar power system you can reap the benefits that come with it without having to pay a lot of money upfront to get it.

Most lease providers provide the option to buy the panels at the end of the lease term at a discounted price. The first step to understanding how much solar can save you is to calculate how much you are currently spending on electricity every year. From 2015 through 2017 homeowners in the united states installed 6 909 gigawatts worth of rooftop solar panels which was double the amount added in the previous 10 years 5. According to doug snower president of an alternative energy company wind free the discussion of buying versus leasing in solar technology is not much different from the same discussion we have around leasing.

You make monthly payments for the panels and are entitled to all the electricity they produce. Some companies also offer power purchase agreements or ppas. In a lease you pay to rent the solar power system typically for about 20 percent less than you were paying for electricity explained freedom forever solar. How much money do solar panels save you on electric bills.

If your electric rates are high you ll pay off the cost a lot sooner according to the solar energy industries association. Any honest solar company should tell you that if walmart or a residential developer is interested in buying or leasing your land a solar lease can not compete from a value perspective. However for farmland owners that have historically used their land for agriculture a solar ground lease offers a more profitable and reliable income stream.