Studies show that you can add $6,000 to the value of your home for each kilowatt of solar panel you’ve installed. People report making more than $10,000 on their home’s resale when they own their panels.
However, buying the panels doesn’t always make sense for people not concerned about the resale value. In addition, solar lease rates are still low even after adjusting for inflation and higher interest rates due to rebates and installation incentives.
Also, some people want to invest in solar panels to reduce their monthly electric bills and help the environment. These people are less concerned about owning the panels as they want to decrease their carbon footprint and use the sun’s energy to help energize their homes.
In the following article, we’ll discuss solar panels. Solar energy, and if a solar lease is right for you.
Pros to Buying Your Panels
If you buy your solar system outright, you benefit from reduced energy bills and tax credits. The current solar tax credit sits at 26%. However, that tax credit will dip to 22% in 2023 before ending in 2024.
If you lease the panels, you don’t get to cash in on the incentive; your solar installer does. Furthermore, if you purchase the panels outright, you can benefit from net metering.
Net metering is when you generate more electricity than you use. In this case, your meter (if you are connected to the power grid) will run backward, and you will receive a credit from your local utility for the excess power you generate.
Also, if you buy your panels outright, you can replace, upgrade, or modify your system as the technology improves.
If you plan to sell your home, it may be difficult for you to get a new buyer to take over your long-term lease. However, solar panels that are part of the home sale tend to increase your home’s value by many thousands of dollars.
Pros to Leasing Your Panels
If you plan to stay at your property for the long term, a solar lease may be the most convenient option. Many leasing agreements have a no-money-down option.
You will still benefit from lower utility rates. Also, you can confidently declare that you are doing your part to reduce our reliance on fossil fuel power generation and combat climate change.
This is important considering the average U.S. home generates about 7.5 tons of CO2 a year.
Solar Lease Rates
Lastly, remember that companies can keep their solar lease rates relatively low because they adjust the price you receive for the solar energy you generate. This way, the company never loses money. Also, you will not have control of your panels or their maintenance while you lease.
Look to a reputable regional installer like Blue Raven for a schedule of updated rates and prices.
Fortunately, solar panels are a proven and stable technology that will probably need less repair than the shingles on your roof.
Ready to Go Solar?
Everyone’s situation is different, so it isn’t easy to calculate accurate solar lease rates without a full inspection of your roof, your property, and an evaluation of your goals.
A reputable solar installer is the best person to turn to evaluate your needs and get the best benefit from going solar.
Was this article helpful? Search the website for more on solar power and financing.