Which one is better: Buying Solar or Leasing?
You’ve made the decision to purchase solar panels for your home or business – whether it’s to save the planet, lower your electricity costs or eliminate them all together. But which one is better: Buying Solar or Leasing?
The idea of installing solar panels is a great one for many reasons, but how you go about it will determine whether it’s an investment worth pursuing.
There are many different decisions that have to be made during the planning phase of your solar panel integration. Besides going over the cost for the solar installation, you have to determine whether you will lease or purchase solar panels outright. If you’re leaning toward leasing then continue reading.
Read More: Make Your Electric Bill Disappear
You Lose Money When You Lease Solar
Most people consider solar panels because it appeals to their financial senses. The idea of lowering one utility bill is enough to get most people on board. However, they fail to fully assess the implications associated with leasing solar panels. Simply put, leasing is not an investment. Installing solar panels that are leased is like throwing away money. You will never own them, so it’s just another bill you will have to pay forever or until you return them.
Prepare for Your Property Value to Decrease
Another important thing you should know is that when installing leased solar panels, it will drive your home value into the ground. Sure, leasing companies will boast about solar leases increasing home value, but this isn’t necessarily true. Some home buyers will be interested in the idea of taking over the lease of solar panels, especially if it means reduced electric bills. However, you have to consider that they will have to be approved by the solar panel company that’s leasing it. This can make selling the property rather daunting.
Read More: Solar Company Powering Houses Amid Covid-19 Crisis
Future Electricity Costs Are in the Air
The only way leasing solar panels would allow you to save money is if your lease payments continue to fall below your utility bill savings. While this may be true today, the future is uncertain – some experts believe that future energy costs will rise 5 percent annually, while others predict that electricity costs will slightly decrease over the next ten years (because of natural gas prices).
Why Property Owners Choose to Purchase Solar Panels
There are a number of reasons why property owners are opting to purchase solar panels versus installing leased ones:
- Once you pay it off, it’s yours
- It can be financed (as low as 0% down at Equisolar)
- The cost savings increases substantially once paid offWhatever you decide to do, make sure you choose a solar panel company in Los Angeles that is trustworthy. And remember – solar panels are the wave of the future!