Solar Energy Mistake #1: Leasing Solar Panels
Filed under: Solar Installation
When you are ready to install a solar power system for your home, is it better to lease or buy the solar panels and equipment? The installation comes at a high cost, which is why leasing might seem like the right move. But before you sign on the bottom line, it’s essential to look at the long-term benefits of leasing vs. buying solar panels.
Best Return on Your Investment: Buying Solar Panels
With leased equipment, it means that you will always have a monthly payment for the use of the solar panels in your system. Basically, you are replacing your utility bill with an ongoing lease payment that never ends.
On the other hand, you only need to make payments until the financing is paid in full when buying solar panels. If you have enough cash, you can pay for the equipment and installation services without getting a loan. Or, you might choose to finance if you don’t want to tie your savings up into the solar panel system.
The best return on your investment comes from buying the equipment. Once you have paid for the solar panels in full, your monthly payment goes away! In addition, solar panels can last 15 – 25 years with proper maintenance. So, if you pay off the loan in 5 years, then it means that you have anywhere from 10 – 20 years of free power from the sun.
Calculate the Long-Term Savings
If you are still trying to decide whether to lease or buy solar panels, ask our team to help you compare the long-term costs. Remember that you will be saving money on your energy bill, which means you have an opportunity to maximize your ROI overall. Both leasing and buying can save money since you reduce your monthly utility spending.
However, buying solar panels gives you a much higher long-term savings potential. Even if you need to pay interest on a loan, it is still cheaper than ongoing lease payments. Plus, buying the equipment makes it possible to leverage financial strategies such as tax incentives and credits.
For more information and personalized recommendations, call us at New Day Solar: (855) 444-6329.
