To Schedule your Free Consultation and
Checkup Call Toll Free at 1.855.765.8931

Become Knowledgeable About The Problems With Solar Leases

Many people with hopes of going green face the decision to buy or rent a renewable energy system, yet are not aware of the problems with solar leases. The decision to change any home or business to renewable energy is an important one, and every consumer should fully understand the differences between renting and purchasing these systems.

Practically since their invention, sun-powered energy panels have been deemed “too expensive” to own, and any home or small business owner is better off entering a contractual agreement. However, technological advancements in recent years have significantly reduced the cost of ownership, and a new system can fit into any budget. Although it’s true that most leases for these systems are at a fixed rate with no down payment, many customers do not know that the leases contain an ‘escalator clause’. This clause causes payments to increase over time. With an increasing rate built into the contracts, customers find that the cost of renting exceeds their average utility bill in just a short period of time.

Several states offer a variety of tax incentives and other benefits, but only to the owner of the solar panels. One of the problems with solar leases is that the consumer is only renting the equipment; therefore all financial benefits are funneled to the lender of the systems. The federal government currently offers a 30% tax credit on the cost of installation, but only to the person or entity that owns the panels. Some states also offer significant cash rebates to purchasers that can reach up to $6,000!

More problems with solar leases arise when a home or building owner wishes to sell their property. The potential buyer must assume responsibility for the rental agreement. If the buyer does not, the original signee of the leasehold must buy out the remainder of the agreement, or otherwise default. This can present a difficult situation when faced with an attractive offer to sell that is hindered by the requirement to spend money in order to avoid financial delinquency.

However, somone who owns photovoltaic panels can increase the market price, and advertise the incentive of savings on utilities to any buyer without complicating matters with another monthly payment. After the short one and a half day installation time (on average), sun-powered energy systems require little maintenance, if any, throughout the life of the structure. However, setups that are borrowed are owned only by a company that, over time, will aggressively advertise for its customers to upgrade to newer panels. The financial problems with solar leases include the cost of the system to correspond with the ever-increasing price of average utilities. However when one purchases a system, a new owner can essentially see their investment pay for itself in as little as four years.

A common misconception of investing in photovoltaic panels for a home or small business is that the systems are only effective in specific geographical climates. This worry can be disregarded; sun-powered panels have been proven to work in several locations throughout Canada. This also means that any location in the continental United States and Hawaii is capable of supporting energy from the sun. Over 150,000 customers nationwide are utilizing the use of renewable energy, and that number continues to grow as more people learn the benefits of owning this technology while recognizing the problems with solar leases.

Related Topics:
  • Solar Panel Installation

  • Back to main topic: Buy Solar Panels
    Advantages Of Buying Solar Panels
    Reasons To Avoid Leasing Solar Panels
    Solar Costs Dependent On Variety Of Factors
    How Much Does Solar Cost?
    Cost of Solar Panels Is Lowering
    Planning to Buy Solar Panel System?
    Costs of Solar Panels More Affordable Than Ever
    Solar Power Sales Reveal Popularity of PV Systems
    Customer Can Now Buy Solar Panels Online
    Solar Leases Pros and Cons
    Buy Solar Panels Online For Convenience
    Attractive Solar Panels Increase Interest In Alternative Energy
    Where Can I Buy Solar Panels?
    Affordable Solar Panels Can Produce Efficient Power
    How To Purchase Solar Panels For Your Location
    Solar Panel Pricing Depends On Many Factors
    Lower Utility Bills With Alternative Energy
    Affordable Solar Energy Is The Key To Power Solutions
    Choosing Solar Panels To Buy Involves A Few Factors
    Should I Buy or Lease Solar Panels?
    How Can I Afford Solar Energy

    Start Saving Now!

    Contact Us Today