For some property owners who decide they want to go solar, the next question is: buy or lease? If you buy a solar panel system, you own the system. If you lease a system or sign a power purchase agreement, then a third party owns the system and you simply pay to use it.
The cost, maintenance, terms and savings for a solar power system differ greatly depending on whether you own or lease. There are both advantages and disadvantages to buying and leasing a solar power system.
Buying a solar power system may be the best option if you:
- - Qualify for federal or state financial incentives to help pay for all or some of the investment.
- - Want to realize the maximum financial benefits of going solar, not just the environmental benefits.
- - Want to increase the value of your home by installing a solar power system.
Leasing a solar power system may be the best option if you:
- - Do not qualify for federal or state investment tax credits or other financial incentives for solar power installations.
- - Want to avoid the responsibility of maintaining and repairing a solar power system.
- - Are more interested in using electricity generated from renewable sources than in the financial savings of going solar.
Whether to own or lease a solar power system is an individual decision that should be made in consultation with a tax and/or investment professional. Going solar can have longterm benefits, both financially and environmentally as you help conserve our natural resources by relying on clean, renewable sunlight to generate electricity instead of dirty fossil fuels.
Before you buy or lease a solar panel system, be sure to explore all your options that are available to you and realize that every situation is different.