If you’re in the market for solar panels, it’s important to be aware of scam artists who may try to take advantage of you. One common scam is offers for “free” solar panels. But as with anything that seems too good to be true, there’s usually a catch. Before signing up for free solar panels, consider the hazards. Otherwise, you could end up regretting it later.
Solar PPAs vs. Solar Leases
Solar power purchasing agreements (PPAs) and solar leases are both long-term contracts that allow customers to purchase solar power from a solar developer. Solar PPAs are typically for 15-20 years, while solar leases are typically for 10-25 years. Businesses and municipalities utilize solar PPAs and leases to lock in cheap solar power rates and hedge against future energy bill rises. These options can also be used by individuals to finance the purchase of a solar system. They typically have fixed prices. Therefore, the customer knows how much they will pay for solar power over the life of the contract. Moreover, these options are becoming increasingly popular as the cost of solar power continues to decline. Solar PPAs and Solar Leases can help customers save money on their electricity bills and provide a stable, long-term source of renewable energy.
Read here: What You Should Inquire from a Solar Panel Sales Representative
There are several drawbacks to solar leasing and PPAs, including “free solar panels.” Aren’t Unbound!
Free solar panels may sound like a great deal, but there are some drawbacks to leases and power purchasing agreements (PPAs). First of all, you won’t own the system – the installer will. This means that you’ll miss out on the federal solar tax credit, which is 26% of the system’s cost in 2020. That’s a $2,600 credit for a $10,000 system. Secondly, the installer will also receive any other solar incentives, such as state or local rebates. This can add up to a significant amount of money over the life of the system. Finally, while you may save money on your electricity bills, the installer will likely make more money from the system than you will. So, while leases and PPAs may be good options for some people, they’re not right for everyone.
Here’s A More Effective Means of Funding Your System.
Free solar panels may sound too good to be true. However, in many cases, they are actually a very effective means of funding your system. With a lease or PPA, you are essentially paying for the use of the panels. Moreover, the installer is the one who owns and maintains them. However, with a personal loan, you own the system and can take advantage of the 26 percent tax credit available for solar panel installation. In addition, the interest rates on personal loans are usually much lower than the rates on leases and PPAs. This make them a more cost-effective option in the long run. Whether you are looking to save money or reduce your carbon footprint, installing solar panels with a personal loan is often the best choice.
conclusion
When considering solar panel options, it’s crucial to be cautious of scams and offers that seem too good to be true, such as “free” solar panels. Solar power purchasing agreements (PPAs) and solar leases can provide long-term benefits, helping businesses and individuals save money on electricity bills and access renewable energy. However, it’s important to be aware of the drawbacks associated with leases and PPAs, including the loss of ownership, missed tax credits, and potential financial benefits for the installer.
For a more effective means of funding your solar panel system, considering a personal loan can be a wise choice. With personal ownership, you can leverage the available tax credits and benefit from lower interest rates compared to leases and PPAs. This makes personal loans a more cost-effective option in the long run. Whether your goal is to save money or reduce your carbon footprint, opting for solar panels with a personal loan often offers the best overall value. Make an informed decision that aligns with your financial and environmental objectives.
