Is it better to own or lease a solar electric system?
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:
- 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.
- 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.
- 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.
- 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.