Going solar is one of the best ways to shrink your home energy bills and reduce the pollution that's overheating our planet. But if the high upfront costs are giving you sticker shock, you're not alone.
According to CNET, solar panel systems can cost between $15,000 and $20,000 to install. Buying a system outright will usually save you more money in the long run, but leasing allows you to start generating solar power without spending a dime upfront.
The right choice depends on your budget, your long-term plans, and the benefits you want.
What's the difference between leasing and buying solar panels?
Buying solar panels means you own the system. Whether you pay in cash or through a loan, you'll be responsible for installation and maintenance, but you'll also keep all the benefits: more long-term savings and a potential increase in your home's resale value.
Leasing solar panels, on the other hand, works more like renting. You don't own the system; a third-party company does.
It installs the panels with little or no upfront cost, and you pay a monthly fee for access to the solar power they produce. That fee is typically between $100 and $200 per month, depending on your system and location, according to Gilbert Michaud, an assistant professor in the School of Environmental Sustainability at Loyola University Chicago who spoke with CNET.
Why solar is so important right now
The cost of solar is at an all-time low, per the report, and the environmental case has never been stronger. Solar panels can help replace dirty energy sources such as coal and gas, which pump out the pollution that's driving more intense extreme weather as temperatures rise.
"If you have the money saved up, and you're planning to stay in your home for 20 or 30 years, it's probably better to buy the panels," said Michaud, who acknowledged that "not everyone owns a big home and can afford spending $20,000."
That's where leasing comes in. Programs such as Palmetto's LightReach solar lease make it possible to install panels with no money down, helping more homeowners unlock the benefits of clean energy without a big financial commitment.
How leasing solar panels helps make clean energy more accessible
A solar lease can lower the barrier to entry for families who want to switch to clean energy. While the monthly savings might not be as high as they would be with an owned system, you'll still benefit from stable electricity bills at low rates and avoid the upfront installation costs.
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Which of these factors is the biggest obstacle preventing you from getting solar panels? Click your choice to see results and speak your mind. |
The upfront cost 💰 Plus, when you lease through a company such as Palmetto, you won't have to handle maintenance, taking one more to-do off your plate.
If leasing isn't right for you, check out EnergySage's free tools to get personalized estimates for buying and installing panels. And if you're stuck between leasing and buying, you can always take some time to weigh the pros and cons of each option.
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