Understanding the Difference Between Buying and Leasing Solar Equipment
Filed under: Solar Installation
When you make the decision to install solar at your home or business, you will need to decide if you will purchase or lease the equipment. It is important to understand the differences between buying and leasing, so here are a few things to know.
What Are the Benefits of Purchasing Solar Panels?
Some advantages to purchasing your solar panels are:
- Owning the Panels Once the Loan is Complete: It always feels better to have monthly payments that will come to an end at one point and result in ownership of the big purchase that you made.
- Qualifying for Tax Credits: The government has set up tax credits to incentivize people to invest in solar. These credits are only available to those who purchase solar panels instead of rent.
- Better Long-Term Investment: In the end, buying solar panels is a better investment.
- Increased Property Value: When your solar is paid off, it becomes a fantastic selling point as potential buyers understand that they will never have an electric bill. This usually means that demand and value for your home increases.
You will find that owning the panels can be beneficial as solar panels are low maintenance, and your payments are going toward your investment each month.
Leasing vs Buying
There are a couple of issues that you must be aware of prior to leasing a solar energy system.
- Never Ending Payments: When you lease solar, you will always have a monthly payment. At the end of your lease term, you will need to either renew the contract (often at a higher rate) or have the equipment removed from your house (which means you’ll have an electric bill again).
- Potential Issues If You Sell Your Home: When you sell a home that has leased solar equipment, the new buyer must assume the lease payments. If the buyer is financing the home, lenders will take that lease payment into consideration and it could make it more difficult for your buyer to qualify for the financing.
New Day Solar does not lease equipment. We believe that the long term benefits of purchasing your solar equipment far outweigh the option of leasing. If you have questions about solar installation, contact us for more information. We’d be happy to provide you with a no-obligation quote for solar installation at your home or business. (855) 444-6329.
