Is It Better To Own Or Lease Solar Panels

Many leases contain an.

Is it better to own or lease solar panels.

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. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. Leasing can be considered to be more affordable in some circumstances.

But the finances and ownership of your solar energy system will change depending on whether you decide to own them outright or not. The main practical distinction between buying and leasing a solar pv system is in ownership. The solar leasing companies own the solar panels so they not you get the 30 federal tax credit. The solar leasing lease companies own the power that your panels generate so although you will get a reduction in your monthly bill you will still be obligated to continue to pay the 80 90 utility payment to the solar leasing company.

Whether you decide to buy your solar panels outright or lease them you ll still get the same clean solar electricity powering your home. People who lease their solar systems save far less than those who buy them outright or with a loan they also miss out on federal tax benefits and any local incentives.