A rooftop solar lease might seem like the ideal solution if you’re strapped for cash and want to make the switch to photovoltaic power. No money down, and you’ll benefit from monthly electricity bill savings – what’s not to like?
Plenty, actually. Rooftop solar leases come with several hidden costs, and many homeowners end up learning the hard way that leasing a PV system might not have been the best decision. The Nationwide Solar team wants to make sure you’re fully informed, so we’re sharing the reasons why we don’t recommend solar leasing.
You Don’t Get to Claim Solar Financial Incentives
The federal solar tax credit offers a reduction in income tax liability equal to 26 percent of the total PV system costs. State and local incentives for adopting photovoltaic power may also be available. These all go to the owner of the solar array – and if you opt for leasing, that won’t be you.
You Won’t See Major Savings on Home Electricity
A solar lease will decrease your monthly home energy costs, but not by as much as you may expect. Leasing companies typically sell electricity at a reduced rate and pocket the extra savings – so while you’ll see lower utility bills with a lease, you’ll save even more if you purchase your PV system.
You’ll Face Challenges if You Need to Sell Your Home
Rooftop solar lease agreements usually have terms of 15 to 20 years. If you decide to sell your home during that time, you’ll have to find a buyer willing to make payments for the remainder of the lease period. Doing so won’t be easy, and the only alternative is to buy out the lease – which could take thousands of dollars.
Save More Money by Buying a Rooftop Solar Array
Think you can’t afford to buy a rooftop solar array? You might be on a tight budget, but various financing options are available – allowing you to reap all of the rewards of investing in photovoltaic power.
A secured loan may be an option if you have sufficient equity in your home. If not, you can look into getting an unsecured solar loan. Some photovoltaic companies – including Nationwide Solar – offer financing for solar with no money down for qualified buyers. And if you finance your PV system purchase, you’ll enjoy a much greater return on investment.
Would you like to learn more? Nationwide Solar, offering residential solar in Idaho, Oregon, Utah and Washington, is committed to helping homeowners save money on PV system installation. With us, you can make an affordable switch to photovoltaic power, without having to resort to signing a rooftop solar lease. Contact us to schedule a free, no-pressure consultation today!
