Solar panel leasing sounds like a great deal. You get solar panels installed on your property with no money down, and you get to enjoy lower energy bills. However, there are a few potential downsides to solar panel leasing that you should be aware of before you sign on the dotted line.
You do not own the panels when you go for solar panel leasing
If you’ve been considering solar panels for your home, you may have come across the option of solar panel leasing. One of the biggest potential drawbacks is that you don’t technically own solar panels when you lease them. This means that if your panels break or need to be repaired, you may be responsible for the costs. Additionally, at the end of the lease period, you’ll need to either return the panels or purchase them from the solar firm. So, while solar panel leasing can have some benefits, it’s important to weigh all your options before making a decision.
No added value when it comes to selling your home
When you lease solar panels, you essentially rent them from the solar company. When you lease, another implication for your home will be the difficulty to sell your home because potential buyers will need to assume the solar lease. Moreover, there will not be an added value through the solar panels. This is because they will still technically be owned by the solar company.
It’s possible that you’ll be trapped with the same panels for a long period
leased solar panels are a great way to go solar without the high upfront cost. However, when you go to sell your home, you may find that the solar lease makes it difficult. Many solar leases are for 20 years. Therefore, it’s possible that the new owners will have to assume the rest of the lease. Moreover, solar panels generally add value to a home. However, since the new owner will be assuming the lease, they may not see the same value increase. As a result, it’s important to think about the solar lease when you’re considering whether or not to go solar. It can be a great way to save money on your electric bill. However, it may also make it more difficult to sell your home down the road.
Solar panel leases are frequently accompanied by strict guidelines
Most solar leases come with strict rules about what you can and can’t do with your panels. For example, you may not be able to sell your home or make any changes to your property that could affect the panels. Additionally, solar leases typically have 20-year terms. Therefore, you’ll need to be prepared to commit to the lease for the long haul. However, if you’re looking for a way to go solar without breaking the bank, solar leasing could be the perfect solution for you.
Read here: What You Should Inquire from a Solar Panel Sales Representative
Leasing solar panel typically have long-term contracts
solar panel leasing may work for some people, but it’s not always the best choice. Solar panel leases typically have long-term contracts. Therefore, if you decide you want to get out of the lease early, you may have to pay a hefty fee. solar panel ownership, on the other hand, gives you the flexibility to sell your home without having to worry about breaking the lease. solar panel ownership also allows you to take advantage of any solar tax credits or rebates that may be available. When it comes to solar panels, it’s important to weigh all your options before making a decision.
Solar panels can save you money on your electric bill. However, solar panel leasing may not be the best option for everyone.
Potential downsides of solar panel leasing to consider
It’s important to carefully consider the potential downsides of solar panel leasing before making a decision. While the no-money-down aspect and lower energy bills can be appealing, here are a few points to keep in mind:
- Lack of ownership: When you lease solar panels, you don’t technically own them. This means that you may be responsible for repair or replacement costs if they break. At the end of the lease period, you’ll need to either return the panels or purchase them from the solar company.
- Limited home value increase: Leased solar panels do not typically add value to your home when it comes to selling. Potential buyers will need to assume the solar lease, and the panels will still be owned by the solar company. This can make it more challenging to sell your home and may not provide the added value you would expect from owning solar panels.
- Long-term commitment: Solar leases often come with long-term contracts, typically around 20 years. This commitment can make it difficult to sell your home since the new owners would need to assume the remaining lease. Additionally, the assumption of the lease by the new owner may not result in the same value increase as outright ownership of the panels.
- Strict guidelines: Solar leases often come with strict rules regarding the use and maintenance of the panels. These guidelines may limit your ability to sell your home or make changes to your property that could affect the panels. It’s important to review and understand these guidelines before entering into a solar lease agreement.
- Long-term financial implications: Breaking a solar lease contract early may come with hefty fees, making it challenging to get out of the lease if your circumstances change. On the other hand, owning solar panels provides flexibility and allows you to take advantage of solar tax credits and rebates that may be available.
Final thoughts
While solar panel leasing can offer some benefits, such as lower upfront costs, it’s essential to carefully evaluate the long-term implications and compare them to the advantages of owning solar panels outright. Consider consulting with a solar energy professional to understand your options and make an informed decision based on your specific needs and circumstances.
