Are you thinking of leasing solar panels for your home or business? You may want to think again!
While leasing does offer some advantages, it also has some significant disadvantages that you should be aware of before signing on the dotted line. Here are just a few of the disadvantages of leasing solar panels.
1. You Will End Up Paying More Money
This one is quite obvious! Monthly payments are often significantly higher than the cost of purchasing. This means that, over time, leasers will end up paying far more for their solar panels than they would if they purchased them!
Additionally, many leases include clauses that allow leasing companies to increase the monthly payments if the cost of electricity rises. Thus, even if solar panel prices drop in the future, leasers will still be locked into their current high monthly payments.
2. You May Not Be Able to Avail of Solar Tax Credits
If you live in an area with generous solar tax credits, leasing your panels is not a good option since you won’t be able to take advantage of these tax credits. In most cases, only the leasing company can claim the tax credit, and you will receive a negligible benefit.
3. Leasing Companies May Not Be Around for the Long Haul
While solar technology has been around for many years, solar panel leasing is still a relatively new industry. Few established companies lease solar panels, many of which may not be around for the long haul. You risk leasing your solar panels instead of buying them outright.
4. Solar Panel Leases May Not Save You Money
While solar panel leases may seem like a good way to save money on your energy bill, this is not always the case. In some cases, the monthly payments you make to lease the panels may be higher than the energy savings on your bill. You may end up paying more for your energy over the long run instead of saving money.
5. Solar Panel Leases Can Increase Your Property Taxes
If you live in a state with property taxes, leasing solar panels can actually bump up your taxes. This is because the lease is considered to be an improvement on your property, thus increasing the value of your home. This can result in a higher property tax bill each year.
6. Solar Panel Leases Can Be Difficult to Get Out Of
If you no longer want to lease your solar panels, you may find it difficult to get out of your contract. Most solar panel leases are for a fixed term, usually 20 years. So, you may end up being stuck paying for the panels for the duration of the lease, even if you no longer want them.
Before considering leasing solar panels, understanding the potential risks and benefits is crucial!
Energy Advantage Roofing and Solar is a leading solar panel company in Fort Collins, CO. We offer affordable solar solutions and high-quality services to the residents of Colorado and surrounding areas!
So, are you ready to switch to solar and start enjoying all the financial and environmental benefits?