Pros and Cons of Buying Versus Leasing Solar
As the solar industry continues to gain ground in Florida, many homeowners are ready to invest in the increasingly popular practice. But, if the initial costs of a solar panel installation seem out of reach, a solar lease may be the light at the end of the tunnel. Solar Bear of Tampa shares four pros and cons of leasing solar panels below.
Did you know installing solar panels can instantly increase your home’s value by over 4% and help you save up to $30,000 across their lifespan? But should you choose to lease versus own the solar panels, you won’t be required to pay for installation, maintenance, or repairs. Instead, you elect to pay a fixed monthly amount to receive the energy from the solar panels on your property. Much like renting a car, a solar panel lease is a financial agreement with a solar energy company.
A considerate pro to leasing solar panels is avoiding the upfront costs. Most homes require 10 to 12 panels to fully cover electricity costs, which on average can total $8,000. If you choose to lease, the upfront costs are significantly cheaper. With this avenue, you also avoid any installation and maintenance fees. Solar installation companies may offer leasing programs that include free installation, maintenance, monitoring, and warranties on the rented panels. This is a great option for any solar panel novices, especially if you’re unfamiliar with the installation process or troubleshooting any issues that may arise.
Let’s talk cons. When you decide to lease rather than purchase solar panels, you miss out on financial incentives and rebates. Leases are ineligible for the 26% federal tax credit on any solar panel systems installed from 2020 to 2022 or the 22% credit for systems installed in 2023. That also includes net metering, a foundational financial incentive for Florida homeowners. Additionally, saving on those upfront costs may just end up costing you more over time. Similarly, to renting a house versus buying one, the costs seem cheaper initially but purchasing and owning an asset leads to significant savings overall.
If you are interested in learning more about leasing versus buying a solar system, speak with our team of experts at Solar Bear of Tampa. Call us at (727) 471-7442 or schedule your free estimate online today!