The Negative Aspects Of The Solar Lease
Leasing solar systems is big business in America. Typically, the option to lease your solar system is marketed as “free or you pay nothing.” With leasing, there is no upfront cost, but as soon as the system is installed, you begin paying for the electricity that the system produces for next 25 years!
The company that holds the lease, takes advantage of the federal and state tax credits that would otherwise go to the homeowner if they purchased the system outright.
The lease is typically set on a yearly rising escalator over 1%. This means that in just ten years the customer will be buying the electricity produced by their panels for more that 10% over the initial price!
Another negative aspect to leasing your solar system, the lease must be agreed to be taken over by the new prospective owner when you sell your home. New prospective buyers most likely will be apprehensive or have objections about the solar lease takeover. This may be a difficult obstacle to overcome in today’s real estate market.
The Financial Negatives Of A Solar Lease
When reviewing the numbers associated with the lease of a solar system, you will notice the customer typically pays more than twice the amount that they would pay if they purchased the system outright. When you factor in the loss of state and federal tax credits, the lack of home appreciation, and the need to purchase the energy produced by the system for 25 years (on a yearly rising escalator), the financial realities of leasing can be quite negative.
To make matters worse, if these lease contracts are sold with the promise that the leasing company will take care of and service the equipment for the length of the lease and the leasing company fails to do so, the customer will be on the hook for these additional expenses.
This is why many home buyers prefer to steer clear of leasing their solar systems. When you purchase your solar system rather than leasing it, you can take advantage of many of the benefits of ownership.
When installed by a reputable solar company, the solar system comes with 25-40 year warranty’s in place to make sure that you are taken care of in the event that the system needs servicing.
With smaller locally owned and operated reputable solar company’s, They typically care more about the customer as opposed to just walking away after the system is installed.
To learn more about buying your solar power system, contact Maui Sun Solar and learn more about solar power.
