Lets get right to the point…there is only one reason why someone should lease a solar power system. One only. If the customer has no appetite for tax savings and cannot use a tax credit now or in the near future, then, leasing is the best approach. The leasing company will monetize the tax credit and some of this value will be in the lease plan.
Fact vs Myth on Leasing vs Ownership of solar energy systems:
1. You get the same warranty and service with solar ownership as you do lease if you select a company that has a track record of being in the industry for decades.
2. If you do not have the cash to pay for your solar system, finance the system so you still have ownership and can still use the benefits of the tax credit. By financing the investment, you will always have more money in your bank account with tax savings and energy savings than you would if you did not purchase a system. Positive cash flow year one moving forward.
3. A lease provides no value to your real estate property. Own your solar system. Make it part of your investment in your home and when you sell, you will have that equity to recover.
4. Leasing can get messy. Selling your home with a lease can be problematic. Getting an equity line of credit can be problematic with the lease on your property.
When shopping for a new home, always keep in mind one simple question… What will it take to install solar now or in the future?
Not every home is feasible for solar. The roof lines might be too cut up with not enough clean space to work with. There could be shading issues or the only good roof may be on the front of your new home and aesthetics can be a serious concern. So, find a home that has great orientation to the sun and enough space to put in a square or rectangular shaped solar system vs one that looks more like a puzzle with panels scattered all over the roof.
Consider the age and condition of the roof. If you have to replace the roof in a few years, factor this in before you invest in your solar system of systems. Also keep in mind that if you have a clay tile roof, this can be problematic and will most likely require a new composition roof under the solar system.
If your new home comes with a pool, you certainly want to consider heating your pool with solar in addition to powering your home with solar. At the same time, you might as well heat your water in your home with solar instead of using gas. Now you have 3 unique solar systems all designed to power your home, power your pool equipment, heat your pool water, and heat your domestic water.
It only takes a few minutes to consult with a solar energy professional to determine how solar can fit your new solar home.
Solar pool systems, Solar electric systems, and Solar hot water heating systems, all can last over 2 decades with proper care and maintenance. Knowing this, when is the best time to consider replacing your system or simply upgrading it?
1. The first determining factor is often the current condition of your roof. If you roof needs to be replaced, serious consideration should be made to remove your existing systems and upgrade them with new technology. If your solar system has little to no warranty left, well, their is a good case for replacement.
2. When you purchased your home, you can inherit a solar energy system which was purchased by the previous home owner. So often, when a property is sold, the condition of an existing solar energy system if often over looked in the sales process. Hire a solar expert to provide the expertise in evaluating the system’s condition. If the system is not up to par, this is a great time to negotiate with the seller and upgrade the system as part of the sale of the property.
3. Service should not be an annual expense for any system. If you are absorbing a regular expense for service that is above and beyond normal, it should be evident that the time is growing close if not immediate, toward system replacement. The key here is to determine the cause of system degradation. Often its a maintenance issue or a system design problem.
Utilize Suntrek’s services to determine your best course of action with any existing solar power system, solar panels, solar hot water, or solar pool heating system.