If you have ever thought about getting solar panels for your home or business, you have probably wondered which would be better for you, to lease or to buy them? The answer to that question is pretty much dependent upon your individual financial goals.
The main difference between going out and buying solar panels outright, as opposed to leasing them for a set amount of time is going to be the ownership of the panels. When you go out and purchase a solar panel system, you are going to own that particular system outright, or if you are making payments, as soon as all the payments have been made. On the other hand, if you decide to go with the leasing option or sign a PPA (power purchase agreement), it will be a third party that will actually own the solar panels that you are using.
Depending upon what you decide to do, there is going to be a very big impact on the overall cost, terms, maintenance, financial offsets, and even the returns or savings on your total investment into the entire system. On top of that, not every company is going to have the option for you to lease or use a PPA, so be sure that you double check the particular solar panel dealer that you are going to go with to make sure that they are able to provide you with the option that you wish to go with. On a side note, you need to make a note that PPAs are not going to be legally permitted in most areas.
Benefits of Purchasing Your Solar Panel System
Here are some of the benefits of purchasing your own solar panel system from SolarEze or financing it with a solar loan, meaning that you will own the solar panel system as soon as the loan has been paid off.
- You are looking to maximize all of the financial benefits that come with installing a solar panel system, as opposed to only benefitting through the environmental benefits that the solar panel system will provide you with.
- You are looking to reduce your state and federal tax liability by taking advantage of the federal investment tax credit.
- You are doing this for your business in order to realize certain tax benefits as your solar panel system is considered a depreciable asset.
- You are looking to boost the market value of your house by adding a solar panel system.
Benefits of Leasing Your Solar Panel System
Purchasing a solar panel system is not for everybody depending upon their specific needs. Here are the benefits of leasing your solar panel system.
- Focused on using electricity that is generated from a renewable source of energy.
- Do not want to have to deal with any type of maintenance or repairs that may need to be made.
- You do not qualify for any state or federal investment tax credits.
- Do not wish to wait until next year’s taxes in order to realize any tax credits.
No matter which option you decide to go with, be sure that you weight your options and select the one that best fits your needs.
