Is Buying Photovoltaic Solar Panels Better than Leasing?
Are you thinking of installing photovoltaic solar panels at your home or business? With the costs of photovoltaic power at an all-time low, now’s a great time to invest.
But if you’re like many potential customers, you aren’t sure how you will finance your system.
Leasing can be a tempting option, as it requires no money down. However, in the long run, buying a photovoltaic solar energy system almost always makes better financial sense.
Buying Photovoltaic Solar Panels Saves More Money
You may not have cash on hand to purchase a photovoltaic solar power system, but that doesn’t mean you can’t buy your solar panels — a home equity loan or second mortgage can easily and affordably provide you with the means.
In the commercial sector, business loans are available for this purpose as well. Or you could opt to finance your system with a private loan program available through your solar installer.
While any photovoltaic installation will cut your monthly electric bills, you’ll see greater savings if you own the system. Only the true system owner is eligible for the 30 percent federal tax credit, as well as most other state and local renewable energy incentives. You will lose those rebates and credits if you lease.
In fact, the rebate credits, along with your interest payments, will go directly to the leasing company.
In addition, you may be able to cash in on the fact that you are producing clean energy. Photovoltaic system owners are often able to earn additional income through Solar Renewable Energy Credits (SRECs), as utility companies pay for the right to claim the electricity produced as part of their required renewable energy production quotas.
Buying Photovoltaic Solar Panels Increases Home Value
Research shows that adding a photovoltaic solar panel system to your home or commercial property can significantly increase its value.
Solar energy is a big draw for home buyers and property investors. In most markets, properties with solar panels sell for much more than comparable listings without systems.
Solar-powered properties also sell faster than traditional buildings. In some cases, properties with photovoltaic solar may sell up to twice as quickly as the competition.
Leasing Solar Panels Is Not an Investment
If you elect to lease your photovoltaic panels, you may never realize the benefits of selling your property more quickly and for more money. In fact, the opposite may even occur.
A solar lease is a long-term commitment, typically requiring 15 to 20 years of payments. But what if you want to sell your property before the end of your lease? You’ll likely have to buy yourself out of the lease, and that can be expensive. Alternately, you could try to find a buyer who has excellent credit and who agrees to take over the lease, but that could be quite difficult.
In fact, buyers are often put off by this requirement, and as a result, many homeowners find that leasing can be a hindrance when trying to sell.
It pays to learn all you can about your solar finance options. Intermountain Wind & Solar can provide you with all viable options and explain the benefits and risks of each. We provide solar energy installations throughout Utah, Wyoming, Idaho, Colorado and Nevada. We look forward to showing you all the benefits of adopting photovoltaic solar energy.