If you've been wanting to go solar but are hesitant about the upfront cost of purchasing a new system, solar leasing may be a good option for you. A recent NerdWallet report reviewed the benefits and drawbacks of leasing solar and suggested what to look out for in a good solar lease.
Solar leasing, or renting the use of a solar panel system, allows homeowners to still enjoy clean, renewable energy without the headache of ownership.
This means that the leasing solar company handles the maintenance and repairs on your solar panels when necessary. Additionally, the approval process to sign up for solar tends to be easier and faster than obtaining a solar loan for purchasing solar, according to the NerdWallet report, which may be appealing for homeowners who might have a more difficult time securing a loan.
With solar leases, homeowners also have a predictable monthly payment on energy costs that tend to be lower than the monthly payments on a purchased solar system, making solar even more affordable and accessible.
Palmetto's LightReach solar leasing program can help homeowners get started with solar without any upfront payment. Because Palmetto Finance owns the solar panel system, the company handles the costs associated with installation, maintenance, and repairs.
However, some homeowners may still prefer owning their own system as opposed to leasing one.
With a solar lease, you have no choice over which panels the company chooses, which may sometimes be cheaper, lower-quality panels. On top of this, because you don't own the system, you don't qualify for solar tax incentives for purchasing panels or installing a solar system.
Although the month-to-month cost of a solar lease may be lower than a payment plan for a purchased system, solar leases may have escalator clauses, which increase the annual cost by 1-5%.
If you still feel that leasing is the better option for your household, NerdWallet's report recommends researching different solar installers in your area and learning about their solar lease options. Good starting points include low to no escalator fees, $0 down, savings on automatic payments, performance guarantees (homeowners will receive compensation if the panels are not producing a minimum amount of energy), and a company with good rapport.
"It pays to compare," the report's author wrote.
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Energy independence ⚡ If leasing is not for you, EnergySage has free tools to help you gather quick estimates on purchasing and installing your solar system and compare quotes.
Whether you own or lease solar, going solar is still an easy way to save money on energy costs, especially with energy prices on the rise. Solar energy is abundant and renewable, powering households with clean energy, without the planet-overheating pollution generated by burning dirty energy sources.
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