Should You Buy or Lease Your Solar Panels?
Nov. 02, 2023
Installing residential solar panels is a big investment, but paying cash isn’t the only option! Leasing your solar panels is a great alternative that allows you to enjoy the benefits of solar without having to worry about making an upfront investment.
Boston Solar offers several financing options for home solar panel installation, including solar leases.
With so many options available, it can be difficult to decide whether buying or leasing a solar system is best for you. The chart below helps clarify the differences, and our solar consultants are always available to answer any questions you may have.
Buy vs Lease Solar Panels: What’s the Difference?
Buying Solar Panels
When you buy your solar panels either with a cash payment or a solar loan, you are the system’s owner. As the owner, you receive all tax benefits and incentives, but you are also responsible for any maintenance or repairs your solar system may need.
Leasing Solar Panels
When you lease your solar panels or enter a Power Purchase Agreement (PPA), you do not own the equipment. A third party will pay for your solar installation so you don’t have to make an upfront investment. You’ll buy the power your solar panels generate at a set cost per kWh that’s guaranteed for a full year at a time. Solar leases provide a lower cost per kWh than your utility company offers, saving you money!
||Buying your solar panels requires an upfront investment. We require a 30% down payment for cash purchases. If you finance with a solar loan, you can own your solar panels for $0 down!
||Leasing solar panels does not require an upfront investment. Instead, you will buy the power they generate at a set cost per kWh that’s guaranteed for a full year at a time!
||The lifetime savings are greatest when you own the system. Buying your system can eliminate your monthly electric bill.
||Lifetime savings are slightly lower for leased systems. Leasing a system locks in your electricity cost per kWh for 25 years, which protects you from rising utility rates. However, you will still be buying your electricity from a third party.
||You will receive a 30% tax credit for your solar panel installation
||You will not be eligible for solar tax credits or incentives. The system’s owner will claim the incentives.
|Maintenance & Repairds
||You are responsible for any maintenance or repairs your solar panels require.
||You will not have to worry about maintenance or repairs. The leasing company will pay for any maintenance or repairs that are needed during the lease term.
Find Out Which Solar Financing Option Is Right for You
If you’re not sure which solar financing option makes the most sense for your home and budget, Boston Solar is here to help. We’ve been helping New England homeowners go solar for over 11 years and have installed more than 5,000 solar panel systems. We offer a full range of solar financing options, including solar loans, solar leases, and solar PPAs, and can help you decide which makes the most sense for you. Schedule a free consultation today to get personalized recommendations from one of our solar experts!
Learn more about your solar financing options! Call 617-858-1645 or contact us to schedule a free consultation.