Is It Better To Lease Solar Panels Or Buy Them?

Solar panels are appearing on more and more roofs all around the country. This isn’t just because environmental awareness is growing; (although that is the case) it’s because installing solar panels has finally become an effective way to save money on electricity costs. Before everyone rushes to get the solar panels installed it is important to talk with a professional like RSG Roofing to make sure your roof is in good enough condition to place the solar panels. There are two major ways to get a solar system installed on your home: Systems can be purchased outright or you can opt to lease solar panels from a solar company. Many solar companies like solar panels Melbourne can give you the right information about these panels.

The Benefits Of Leasing Arrangements

A major factor that makes solar systems affordable today is that various governments (federal, state, and even local) offer significant tax incentives to reduce their cost. Solar leasing companies use these incentives to put solar power within reach of homeowners with relatively modest financial resources. Leasing companies retain ownership of the equipment they install and charge a monthly fee for its use. In return, the homeowner gets the benefit of all the electricity the solar panels generate. This option presents minimal upfront costs, although the overall economic benefit to the homeowner will be lower due to the lease payments.

The Advantages Of Purchase

Homeowners with more money available for home improvement can buy their own equipment and claim the solar tax incentives for themselves. This greatly increases the savings generated by a solar system, and a properly-designed and maintained system will pay for itself many times over. The drawback to this option is the significant initial investment it requires. Even with the savings provided by tax incentives, a complete solar system will cost many thousands of dollars. Maintenance is also an open question for people who own their own solar systems; they’ll either have to take responsibility for it themselves or buy a service contract with a solar company.

Choosing The Right Option

As the details provided above suggest, the primary factor that influences homeowners in choosing between leasing or buying is their financial situation. Leasing arrangements are perfect for homeowners who want to get panels immediately, even though they lack large amounts of surplus cash. Buying is more advantageous for homeowners who can arrange the necessary financing, and owning their systems outright adds considerable value to their homes. However, some homeowners prefer to lease even when they have enough money to buy, simply because it’s more convenient to let the leasing company handle maintenance.

Although their efficiency and affordability is improving every year, solar panels still have some way to go before they’re ready to compete unassisted in the free market. Tax incentives make it possible for homeowners to jump into the solar market right now, though, and the option of leasing a system makes this a possibility for homeowners of even the most modest means. Click here for more information.

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