Purchase Vs Lease Solar Panels

A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company.

Purchase vs lease solar panels.

Difference between leasing vs buying solar panels. Be the owner. Comparing a solar lease vs. The only real con of buying solar panels is the required upfront costs.

The solar panels become the property of the purchaser after the funds are transferred. When you buy solar panels whether it be with cash or through a solar loan you are the owner of the solar panels. Depending on where you live you will have to either sign up for a solar lease or solar power purchase agreement ppa. The main practical distinction between buying and leasing a solar pv system is in ownership.

If you sign a solar lease or ppa you are renting the solar panel system from the solar company that owns it if you install solar panels with a solar loan you are the system owner which comes with additional financial benefits and responsibilities the question of whether you want to take out a loan or lease your solar panels is dependent on your preferences needs and financial goals. The easiest way to decide between a lease and a loan all other non financial considerations being equal energy savings equipment quality intangible priorities is to compare the payments. The cons of buying solar panels. But the finances and ownership of your solar energy system will change depending on whether you decide to own them outright or not.

The pros and cons of leasing solar panels. Purchase running the numbers. Buying involves purchasing the solar panels for domestic or commercial use using the buyers own or borrowed funds. The main difference between buying and leasing a solar system is who owns the system.

However although an outright solar panel purchase requires a substantial amount of out of pocket cash you do have the option of financing through a zero down loan. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. Some companies also offer power purchase agreements or ppas. Let s now talk about the differences between solar panel ownership leasing and purchase power agreements ppas buying solar panels.

If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. You pay a fixed monthly amount to use the energy generated by the solar system on your roof. With a solar lease or solar power purchase agreement solar ppa you don t have to pay any upfront costs to install solar panels on your roof. You pay a fixed price per kwh for power generated by the system in most cases your monthly bill will rise or fall with the amount of power your system produces.

Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat.