Residential Solar Power: Leasing vs. Buying

By Albert - On Aug 14, 2023

The decision to switch to solar energy for your home is a commendable one, promising both environmental benefits and potential cost savings. However, once you’ve decided to go solar, a new question arises: Should you lease or buy the solar system? Both options have their merits, and the best choice depends on individual circumstances and preferences. Let’s delve into the pros and cons of leasing versus buying residential solar power systems.

When considering the advantages of residential solar power options, it’s worth exploring both leasing and buying. Blue Raven Solar can help you weigh the benefits of each to make an informed decision for your home.

Leasing Solar Panels

Pros:

No Upfront Costs: Leasing often requires little to no money down. This makes it an attractive option for those who want to switch to solar without a significant initial investment.
Maintenance Included: The leasing company typically handles maintenance and repairs, ensuring the system runs efficiently without added costs or effort on your part.
Easy Upgrade: As technology advances, you might have the option to upgrade to more efficient panels at the end of your lease term.
Fixed Monthly Costs: Leasing agreements usually come with a fixed monthly fee, allowing for predictable budgeting.

Cons:

Long-term Costs: Over the duration of the lease, which can be 20 years or more, you might end up paying more than the cost of buying a system outright.
Contractual Obligations: Exiting a lease early can come with penalties or require you to buy out the remainder of the contract.
Property Value: While solar generally increases property value, leased systems might not add as much value as owned systems, and potential buyers might need to agree to take over the lease.

Buying Solar Panels

Pros:

Ownership: You own the system, giving you full control over it. This means you can modify or expand it as you see fit.
Long-term Savings: While the upfront cost is significant, the long-term savings are substantial. After recouping the initial investment, the electricity generated is essentially free.
Tax Incentives and Rebates: Purchasing a solar system often qualifies homeowners for tax credits, rebates, and other financial incentives.
Increased Property Value: Owned solar systems can significantly boost property value, making it a worthy investment if you plan to sell in the future.
Potential for Earnings: In areas with net metering, you can sell excess electricity back to the grid, turning your solar system into a potential source of income.

Cons:

Upfront Costs: Buying a solar system requires a significant initial investment.
Maintenance Responsibility: While solar systems require minimal maintenance, any required repairs or upkeep fall on the homeowner.
Depreciation: Like most technology, solar panels degrade over time, albeit slowly. This means their efficiency and output might decrease over the years.

Conclusion

The decision to lease or buy a solar system boils down to individual financial situations, long-term plans, and personal preferences.

If you’re looking for a low-risk introduction to solar energy without the responsibility of ownership, leasing might be the way to go.

If you view solar power as a long-term investment and are keen on maximizing returns, buying could be the better choice.

Regardless of the path you choose, the move to solar energy is a step towards a sustainable, eco-friendly future, and both options offer a way to harness the sun’s power for your home’s benefit.