Solar Leases Powered By The Sun
Solar leases are one of the most common ways to finance a solar system, especially for homeowners and businesses looking to install an array with no upfront costs. Under this structure, the solar energy company owns and services the system and charges a monthly fee for the electricity created.Solar Lease,
How Solar Lease Work
Lease: The lessee enters into a long-term lease agreement with the solar company.
Step 1: System Installation – The solar provider installs the panels at the property of the lessee.
Production of Electricity: The solar panels will produce electricity and the electricity produced can be used to run the house.
Monthly Payments: The amount you are going to pay monthly goes in a fixed fee to the solar company wherein they will be charging for every watt or kilowatt of electricity that your installation is producing.
Benefits of Solar Lease
No down payment — you can avoid a large initial investment to get a solar system with leases.
Predictable Monthly Payments — If you get a loan at a fixed interest rate, then your monthly payments will be the same.
Professional Maintenance — The solar company takes care of the maintenance and repairs of your system.
Possible Tax Advantages:** Depending upon the use intended, lease payments can be tax-deductible.
Drawbacks of Solar Leases
.* Less Control: Lessees cannot control the system or how it works.
Doubtful on Costs long terms: Monthly payments have the potential of double, triple incresing with time especially if energy price were to go up.
Does Not Deliver Ownership:** The lessee will not be the owner of the solar system once their lease term has ended.
Is a Solar Lease Right for You?
A solar lease could be beneficial for homeowners and businesses who:
Do not want to buy upfront.
Due to their malignancy they are more sensible with repayable table loans, where some words who work on profit making ground prefer predictable monthly payments.
Do not want to own the solar system.
On the other hand, if you want permanent savings and complete ownership of your solar system, a solar purchase or solar loan could be a better fit.
Carefully review the terms of a solar leaseIncluding the term of the lease, before signing