Making the decision to go solar is the first step to gaining energy independence.
The next step is understanding why solar ownership is still the better option.
The main distinction between buying and leasing a solar PV system is in ownership. If you buy a solar panel system, you own the system, either outright (if purchasing with cash) or after repaying your solar loan within 4-5 years. When leasing the system or signing a power purchase agreement (PPA), a third party owns the solar panel system, not you. Additionally, a typical leasing contract could take up to 25 years to pay back, not allowing you to really capitalize on the true benefits of going solar.
Another question to ask yourself before purchasing or leasing a solar system is, do you want to eventually have the option to sell your home? It turns out that some would-be buyers step away from a home they are interested in buying the moment they learn that they’ll need to qualify on credit to take over your solar lease payments for the next 15-17 years.
- Maximize the financial benefits of installing a solar panel system, rather than solely benefitting from the system’s environmental benefits
- Be eligible to reduce your federal and state tax liability through the federal investment tax credit
- Realize tax benefits by treating the solar panel system as a depreciable asset for your business
- Increase the market value of your home by installing a solar panel system that you own outright
So why else is ownership more beneficial to your bottom line? This distinction impacts the cost, maintenance, terms, financial offsets, and savings/returns on investment of your solar panel system. The savings from owning a solar system are significant. Purchasing a system presently pencils out to about 50 percent less than leasing over the long term with the payback period being as little as three years.
Sunworks is a true fiduciary.
We do not provide a financing service and we do not manufacture solar panels. We are a solar solutions provider and we believe everyone should have the ability to become their own power company. Why lease to a utility or third party for your energy when you can produce it yourself?
The Sunworks team is here to help guide you in making the right decision. Contact us today to talk to a Sunworks Solar Representative.Contact a Solar Expert