Have you ever wondered “What is a solar lease“? If so, it is just an agreement to lease a solar electric system instead of outright purchasing it. In essence, someone else owns the system but you pay a monthly fee to use it. The regular payment can be fixed, escalating or de-escalating over the period of the lease so it fits into your budget.
One of the main advantages of leasing a solar system is you are not required to make a large upfront investment in the solar panels or the installation. With a lease, you usually can get started for little or nothing down. Most solar system companies are advertising the ZERO DOWN solar lease program. Its hard to say NO to a payment that is lower than your current electric bill. Not to mention, you have a fixed payment versus escalating energy costs. Last but not least, you are saving the environment thus making a safer future for your family.
Does it make sense to own versus lease?
It makes sense to own your solar panel system if you plan to live in your home for a long period of time. If you can afford the up front cost, you start making money the first month out. If you choose to finance a purchase, your payments will cease at some point thus saving you money each month thereafter. Unlike a solar lease, you give up the services that a company provides such as monitoring, maintenance, repairs, insurance and guarantees.
What happens when the lease expires?
An average solar lease program can be for 10 to 20 years or more. Once the lease agreement expires you have the option of renewing the lease agreement, buyout the system for fair market value or have the solar company remove the system. If you choose to move before the end of the lease, you must transfer the lease.
Nevertheless, a solar lease program has advantages and disadvantages depending on your current and future needs. Either way, a photovoltaic system is a great alternative to fossil fuels. There is no disadvantage to clean, safe and renewable energy.