Many people want to go solar to hedge against volatile energy prices and reduce their carbon footprint. However, not everybody wants to take the high initial costs and lower their monthly electricity bill – but they are reluctant or just can’t afford to pay tens of thousands of dollars for a pv solar system. For those people the solar industry has come up with some interesting financial vehicles to meet the growing demand for solar: solar lease.
What is solar leasing
In a lease model you will sign a contract with an installer and pay a monthly fee for the solar energy system over a period of years (up to 25 years). Some providers require an upfront fee of up to $500 whereas other providers will not require any upfront payment. Keep in mind that with paying some money upfront you can lower the monthy payment (even down to zero). For the length of the leasing contract you can use the generated electricity – and lower your energy costs and make them more predictable. Like a car rental the solar company remains the owner of the panels. Keep a look at the contract if they take over the maintenance and potential repairs of the panels. As the company is the offical owner of the panels, the company collects the subsidies and tax credits from the state and federal government.
While solar leasing gets bigger and bigger there are some potential disadvantages you have to keep in mind. You may miss out on the cash incentives which are handed out by states and utilities and if you want to sell your house with the solar panels you have to convince the buyers continuing to pay the monthly fee.
If you want to get a offer you can get in touch with solar companies here.
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