Does Solar Panel Leasing Make Sense

The payback period to recoup the cost of the system would simply be too lengthy.

Does solar panel leasing make sense.

Solar leasing can make sense for certain consumers. When you purchase instead of lease a solar system it dramatically raises your home s value as soon as you install it. On the other hand if your main reason to install solar is to cut pollution not save money then solar would make sense. By scott gordon may 18 2015.

In most cases you ll save much more money in the long run by exploring other financing options like an fha title 1 loan or a traditional loan from your personal bank. The main practical distinction between buying and leasing a solar pv system is in ownership. We simply do not recommend it. In my last article i may have seemed unwaveringly against solar leasing and ppa s but nothing could be further from the truth.

If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. Like other financing tools solar leasing has its place in the home improvement industry along with same as cash financing helocs home equity lines of credit and collateralized seconds. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. Leasing solar panels for your home is not a good idea from a financial perspective.