Owning vs Leasing Solar energy System

Solar energy is getting affordable by each passing day and it is now being argued that owning solar energy system is more beneficial than leasing it. Many builders now offer a built in solar system with their properties.

Why we argue in favor of owning a solar energy system

Lease agreements are long term contracts and do not offer to get out in the middle. It does not give any option of buying or paying off early. Solar energy is getting cheaper and cheaper! People who opt for lease do not get the benefits of solar rebates and tax incentives that are provided to the solar installers. Also the solar industry now provides various easy finance options for the owners. Definitely owning a solar system offers more savings than leasing. Solar lease is a more expensive option when compared to having a solar system installed by oneself, plus there is also the escalation clause that is attached to it.

In California for example, the lease rate is somewhere between 15-20 cents, with a 2.99% escalation each year. However the ownership stays constant at 0.07-0.08 cents forever. If we calculate the monthly electricity costs, the cost with leases will be expensive despite the fact that the monthly rate that is set in lease agreement is slightly less generally. This is because of the resulting rate including the lease payment is typically higher than the same calculated by purchasing the system.

The resale value of the property with a solar system installed also increases. People are now well educated about the benefits of solar energy and the effects it brings in the long run. It is affordable, abundant and environment friendly. The electricity bills reduce considerably. Solar energy systems are like an incentive for the new home buyers today.

Thus we offer a thumps up for people who instal solar energy systems rather than leasing it out!

Source: Renewable energy world