solar-power--When most people think about leasing, they
may be more inclined to think of a vehicle than solar panels. But leasing of
solar panels is exactly what many homeowners are doing today, and it is more
popular than ever. This is because it is making the installation of solar
panels, which was previously out of the reach of homeowner much more
affordable.
Solar leases have actually been around since
the early 2000s. The number of solar power systems in California were able to
be dramatically increased from just 50 in 1999 to a whopping 50,000 just twelve
years later. In the last two years, rooftop solar installations have more than
doubled thanks to the increased availability of solar leases, declining solar
panel prices and incentive programs offered by the government.
How Solar Leases Work
Simply put, a solar lease is something
offered by a company that sells solar panels. But before a solar lease can be
granted, the company like him has to ensure that a
homeowner’s roof is capable of handling a series of panels, or an array. If a
roof is deemed suitable, then there may be more than one option available for
leasing.
The homeowner may be able to get a solar
array installed on their roof with no money down and a monthly fee, or by
paying a certain amount at the outset with the goal of reducing or eliminating
monthly fees. The solar company which installed the array will also maintain
the system to ensure it is operating at maximum efficiency. Just as the car dealership would own a leased
vehicle, so does the solar company own the arrays they lease to homeowners.
Once the end of a leasing period is reached –
which is usually 15 years – the homeowner has the option to extend it, buy the
array from the company outright or have the array removed.
The Advantages Of Choosing A Solar Lease
One important advantage to choosing a solar
lease is that it doesn’t carry the same costs that buying does. A homeowner can
pay monthly, which is much easier on the pocketbook than purchasing a system
outright.
Another advantage is leasing doesn’t require
the homeowner to pay the cost for maintenance. Instead, the solar company who
offered the lease is responsible for this.
Lastly, the energy cost reduction for a
homeowner with a solar lease may allow for a much longer lock-in rate than a
utility company might offer. A homeowner may be able to lock in their rates for
a decade or more with a solar lease.
The Disadvantages Associated With Solar Leasing
Homeowners who lease their solar power
systems may have less flexibility due to the specifications within their
contract. These specifications dictate how big an array for a particular home
can be, where purchasing an array outright will not.
Having a solar lease may make it more
difficult for those homeowners looking to sell their properties. This is
because some may not be interested in taking on a lease in addition to the
other costs associated with homeownership.
Finally, a homeowner may not be able to pay
off their system early, meaning monthly payments for many months or years
before the lease contract can be considered fulfilled.
Getting a solar lease also involves passing a
credit check, which is something that not all homeowners may be able to do.
However, recent news has revealed that solar leasing is gaining momentum, which
can mean falling costs to homeowners.
The decision to install a solar array,
whether the array is leased or not should not be one that is made lightly.
Installing a solar power system means being committed over the long term to not
only the generation of cleaner energy but the learning curve that has a
solar array installed on home involves.
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