If you decide you want solar power, and you don’t have capital (cash) up front, then you’re sensible to look at leasing solar panels for your home. (See Solar Power – Should you Lease or Buy)
But you might be paying a lot more than you need to.
There’s a lot of profit to be made in solar leasing, and some companies won’t tell you the whole story.
Zero Cash Down
This is a huge drawcard of solar leasing. Buying solar panels for your home can be expensive, and not everyone has that amount of ready cash.
So leasing seems like a great alternative.
However, be aware that you may be able to get an attractive, zero-down loan which will let you buy the solar panels for your roof – for example, in the USA you can get a zero down FHA solar loan. It’s easier to qualify for than a lease , you don’t need home equity and the interest is tax deductible. If you live in the USA, here’s a Federal Guide to the loan options available to you (Check your own location for solar loans – most places offer good incentives).
You’ll get all the great cash incentives and deductions when you buy solar panels with the special loan, and you’ll own the panels instead of renting them. Your house will now have an asset on its roof, which you can take with you if you move, or sell it with the house for a higher price. Selling a house with a solar lease (debt) can be more difficult.
You’ll get ALL the utility savings as soon as the loan is paid off, and you’ll continue to receive non-taxable income from those panels into the future.
Yes, the payback time is a few years, but what’s the payback on that car you bought?
Repairs and Maintenance
The solar leasing companies look after repairs and maintenance for you, whereas if you buy the panels yourself, you’ll have to do it. However, the panels come with a long factory warranty, and as a general rule once the panels are installed they’re quite trouble-free. You might need to hose down the panels if you don’t have rain for a while, but that’s about all.
Cost
Of course we all know that leasing something costs more over time than if you buy something up front. But the price difference for solar leasing can be quite startling.
Do the exercise for yourself, and compare the cost of the lease over 20 years (with nothing at the end of it) versus buying with a loan and decide what’s best for you.
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[…] Fin out What The Leasing Companies Won’t Tell You […]
There is no doubt that if you can get a ‘zero cash down’ loan that buying for yourself is the bets way to go especially since you also get tax relief. I knew there was going to be interesting ‘small print’.
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