Solar Panels: Lease or Buy?

By on July 17, 2017

One of the more commonly asked questions we get is whether our customers should buy or lease solar panels. Our answer to that question? Yes.

Yes – because they should go solar no matter what, but how you pay really depends on your situation. Today, we’ll break down the benefits of both.

Why you should buy

Here’s why you should consider buying solar panels:

  • You’re looking to save money on electricity and gain total energy independence.
  • You simply want to own the panels
  • Your taxes are such so that you qualify for the solar investment tax credit.
  • You want to fully maximize the financial benefit of changing over to solar power

Solar loans are readily available in a wide array of payment terms.

Why you should lease

Solar leases and Purchase Power Agreements have made solar power accessible to a wide range of home owners. Leasing certainly won’t save you as much as buying would but it’s certainly cheaper than utility electricity.

What makes leasing appealing is mostly a matter of taxes. The US government offers a 30% tax credit to people who use solar. Now bear in mind, if you don’t pay a lot in taxes, this is a hard credit to obtain – but if you find yourself carrying a big tax bill, you probably would. That 30% is a big nut to crack, and if you don’t qualify for it through a straight-purchase – then maybe leasing is the more reasonable way to go.

So if you’re going to lease, then you:

  • Probably don’t care about owning the panels
  • Your taxes are too low to qualify for the tax credits
  • Your immediate financial savings are going to be more important to you now than larger, long-term savings.

 

Either way you decide to go, you’re still going to save a lot of money in the long run – and you’ll be doing the earth a big favor. If you’re interested in installing solar panels on your roof, call us today!