If you’re a homeowner who’s looked into San Antonio solar panels as a means to slash utility bills, you’ve probably heard a pitch similar to this: “With leasing or a power purchase agreement (PPA), you don’t need to bother with purchase, installation costs, or even maintenance!” This pitch can sound quite appealing, but only highlights one option and doesn’t contrast owning vs. leasing solar panels.
Leasing can save you upfront costs, but there are ways of owning solar panels that don’t drain your bank account.
Leasing vs. Owning Solar Panels: Benefits of Owning
It’s a big decision when choosing between leasing and owning, but considering the long-term investment is key. Solar panel ownership can be very rewarding. There are quite a few ways to finance your solar panel system.
Texas, and quite a few other states, offer financial incentives for renewable energy ownership. The most convenient way to own solar panels is to work with your solar panel installer or contractor, but you can also finance with banks and lenders easily.
Owning your solar panels lets you maximize your long-term financial benefits. You can drastically reduce the total cost of your solar panel system with cash rebates and state and federal policies. Meanwhile, PPA and leasing disqualify you from these programs. For example, the Federal Solar Tax Credit (ITC) program is based on purchasing your solar panels.
Solar ownership is a great way to increase your property value, while leased panels can actually discourage potential buyers because they usually would have to assume the lease themselves if not bought off. In this way, leased panels aren’t considered an asset when you’re selling your property.
Solar panel systems that are purchased can pay for themselves in about seven years depending on usage. However, leased panels are generally owned by the provider for up to twenty years.
A quick recap:
● Your system can pay for itself in about 7 years
● Can increase curb appeal and value
● Can qualify for incentives & tax credits
● Can save you more in the long-term
● Lease term can last up to 20 years
● Can be discouraging to potential home buyers
● No tax credit or incentive benefits
● Save less money long-term
So there you have it. A few of the benefits of owning vs. leasing solar panels. If you’re interested in solar panel installation or have any questions, don’t hesitate to reach out to us!