It’s no secret that the world is careening towards a serious energy shortage. The majority of the world’s power requirements right now are supplied by the burning of fossil fuels.
But not only do these fossil fuels cause climate change, but they are also in limited supply. Pretty soon, the world will be forced to go to renewable energy options.
One of the best such options is solar panels, as they can be installed in residential or commercial buildings alike. But is leasing solar panels or buying them outright better for your requirements?
In this article, we’ll attempt to answer that exact question. We’ll take a look at the pros and cons of solar panel leasing and purchasing solar panels to better equip you to make your decision to buy or lease solar panels.
Buying Solar Panels
The first and obvious pro of buying solar panels is that they are yours outright. You don’t have to pay a monthly fee that doesn’t go towards equity in the panels. You’ll never have to worry about the solar panels being removed from your home unless you want that to happen.
Another significant benefit of purchasing a solar panel installation comes from the government. Not everyone knows this, but the IRS will give you a tax credit for your solar panel installation. This can offset more than a quarter of the installation cost, which is the primary con that inhibits folks from purchasing a solar panel installation outright.
The other con that comes with owning solar panels is that maintenance falls on you. Like all other things on your property, solar panels will deteriorate as they are used. That means that you will have to implement a maintenance schedule to keep them going as long as you can.
These costs will only increase with solar panel size.
Leasing Solar Panels
If you don’t have a lot of money to put into a solar panel installation upfront, then you will realize the most significant pro to leasing solar panels: the lack of a huge upfront cost.
The other benefit is also the converse of the buying situation. All maintenance and repairs are included. The solar panel company will also typically pay for fixes to the solar panels if they are ever damaged in inclement weather.
The con of leasing solar panels is that you just replace your typical power bill with a leasing fee. The fee doesn’t go towards equity in the long-term, and you are usually locked into a 10+ year contract. However, if you’re committed to using solar energy and don’t want to assume the cost straight up, then leasing might be the best option for you.
Buy or Lease: Which One is Right for You?
It’s clear that moving towards renewable energy sources like the sun is a must. But knowing whether buying or leasing solar panels is right for you is a different task altogether. With this article, we hope to have shed some light on that decision for you.
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