Leasing vs Buying

With so many different options, it can be difficult to know what type of solar plan is right for you. One of the biggest decisions to make when considering solar concerns buying or leasing your system.  Before you decide, here are a few links that may help:

Leasing a System:

Pros:

  • Viable option for institutions that are not eligible for tax credits such as schools and nonprofit organizations.
  • If you have 0 federal taxable liability
  • Lowers the monthly bill
  • Leasing company is financially responsible for maintaining the system (but do they)
  • No money down

Cons:

  • Decreases value of home (and you have to get leasing company
  • Leases are often for 20 years
  • System is not sized for your home
  • System may not be designed to suit your needs (equipment and installation)
  • Installer gets the tax credit, not you
  • Don’t save as much money
  • Leasing companies within our state have history of poor craftsmanship
  • Inflate the price of the system
  • Often use cheaper products
  • Consumer cannot choose the brand
  • Loss of warranty if installer goes out of business

Owning a System:

Pros:

  • Increases value of home
  • System pays for itself within about 4 years
  • Much higher savings and return on investment in the long run
  • You get 80% tax credit
  • There are great financing options available
  • You can design the system to suit your needs

Cons:

  • High initial costs (that can be offset with financing options)
  • Homeowner is financially responsible for maintaining the system

http://www.solar-estimate.org/?page=solar-lease
http://www.constantsolar.com/residential/buying-versus-leasing.html