Everything You Need To Know About The Solar Lease

solar-power--When most people think about leasing, they may be more inclined to think of a vehicle than solar panels. But leasing of solar panels is exactly what many homeowners are doing today, and it is more popular than ever. This is because it is making the installation of solar panels, which was previously out of the reach of homeowner much more affordable.

Solar leases have actually been around since the early 2000s. The number of solar power systems in California were able to be dramatically increased from just 50 in 1999 to a whopping 50,000 just twelve years later. In the last two years, rooftop solar installations have more than doubled thanks to the increased availability of solar leases, declining solar panel prices and incentive programs offered by the government.

How Solar Leases Work

Simply put, a solar lease is something offered by a company that sells solar panels. But before a solar lease can be granted, the company like him has to ensure that a homeowner’s roof is capable of handling a series of panels, or an array. If a roof is deemed suitable, then there may be more than one option available for leasing.

The homeowner may be able to get a solar array installed on their roof with no money down and a monthly fee, or by paying a certain amount at the outset with the goal of reducing or eliminating monthly fees. The solar company which installed the array will also maintain the system to ensure it is operating at maximum efficiency.  Just as the car dealership would own a leased vehicle, so does the solar company own the arrays they lease to homeowners.

Once the end of a leasing period is reached – which is usually 15 years – the homeowner has the option to extend it, buy the array from the company outright or have the array removed.

The Advantages Of Choosing A Solar Lease

One important advantage to choosing a solar lease is that it doesn’t carry the same costs that buying does. A homeowner can pay monthly, which is much easier on the pocketbook than purchasing a system outright.

Another advantage is leasing doesn’t require the homeowner to pay the cost for maintenance. Instead, the solar company who offered the lease is responsible for this.

Lastly, the energy cost reduction for a homeowner with a solar lease may allow for a much longer lock-in rate than a utility company might offer. A homeowner may be able to lock in their rates for a decade or more with a solar lease.

 

The Disadvantages Associated With Solar Leasing

Homeowners who lease their solar power systems may have less flexibility due to the specifications within their contract. These specifications dictate how big an array for a particular home can be, where purchasing an array outright will not.

Having a solar lease may make it more difficult for those homeowners looking to sell their properties. This is because some may not be interested in taking on a lease in addition to the other costs associated with homeownership.

Finally, a homeowner may not be able to pay off their system early, meaning monthly payments for many months or years before the lease contract can be considered fulfilled.

Getting a solar lease also involves passing a credit check, which is something that not all homeowners may be able to do. However, recent news has revealed that solar leasing is gaining momentum, which can mean falling costs to homeowners.

The decision to install a solar array, whether the array is leased or not should not be one that is made lightly. Installing a solar power system means being committed over the long term to not only the generation of cleaner energy but the learning curve that has a solar array installed on home involves.