Going solar has become a viable option with prices of solar panels going down, technological advances and increased production of solar systems. With access to solar energy, people, businesses and government organizations can reduce their utility bills, manage their energy consumption and positively impact the environment. Did you know that you have the option to either buy solar panels or lease them? Let us look at the differences of owning a solar system and leasing solar panels:
| Buy solar panels | Lease solar panels |
|---|---|
| An upfront cash purchase will involve a bigger cash outflow in one go. But as per EnergySage, it gets paid off in five to seven years in terms of reduced utility bills and savings in terms of tax credits, rebates and incentives. | By leasing solar panels, you do not have to pay any money upfront. But the lease agreement will be a long-term agreement of up to 20-25 years. In addition, a lease will not qualify you for tax credits, depreciation, rebates or other incentives. |
| If you have the financial means or can avail of a loan, buying solar panels is a sensible choice as you can maximize the financial benefits. GreenBrilliance offers various financing options to purchase solar solutions. | When you have limited financial ability but want to reap the benefits of reduced electricity bills and reduce your carbon footprint, leasing is a viable option. Contact us @ 703-657-0090 or email us @ gosolar@greenbrilliance.com to find out the leasing options we offer. |
| As the owner, you will be responsible for the maintenance and monitoring of the solar panels. | Usually, a solar lease comes with a maintenance package, with some solar companies offering performance guarantees. So, if the equipment is not producing energy as promised, the lessee will be compensated for shortcomings in production. |
| Owning a solar system enables you to earn money with the power you generate either by using Solar Renewable Energy Certificates (SREC’s) or selling excess energy generated to the power company. | Solar leases will not help you generate any additional revenue. The lease will usually require an annual payment escalator of 1% to 5% per month. |
Solar is the way forward
Owning a solar system involves higher upfront costs and maintenance efforts. But it offers higher savings and flexibility in terms of selling the premises where it is installed. On the other hand, a lease is better if there are barriers to buying solar panels and you do not want to be involved in maintenance and monitoring of the system. Either way, solar energy is the best way to go forward for better financial returns and a cleaner and greener environment.
