Will Leasing Solar Panels Save Me Money

Advantages of leasing solar panels.

Will leasing solar panels save me money.

You lease the solar panels and receive all the energy they produce but do not own the panels. Solar leasing is a lot like a lease on a car. Solar panels and solar panel systems will save you money and bring a return on your investment in no time. 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.

Pay little or nothing and save hundreds of dollars per year on average. You receive free electricity for the life of the solar energy system usually 25 to 30 years. The steep up front costs for a residential solar system can make a leasing company s sales pitch sound pretty appealing. 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.

Rising property values lowered utility costs and the federal tax credit all ease the upfront costs of installing solar panels. 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. 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.

For example the average annual electricity use required for a u s. Household is 10 972 kilowatt hours kwh. 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. 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. Solar leasing and ppas account for over half of this total and there are some excellent reasons why solar leasing has. However for farmland owners that have historically used their land for agriculture a solar ground lease offers a more profitable and reliable income stream. Some companies also offer power purchase agreements or ppas.

You make monthly payments for the panels and are entitled to all the electricity they produce. The first step to understanding how much solar can save you is to calculate how much you are currently spending on electricity every year. 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.