Buying Out Solar Panel Lease

You may be able to transfer the lease to the new homeowner buy out the remainder of the lease and have the system removed or purchase the solar panel system at market value and leave it on your roof.

Buying out solar panel lease.

While owning your solar panels does offer significantly greater 20 year savings solar leases can be a better deal for homeowners who can t take advantage of tax credits or other rebates and incentives. Most solar leases require 0 down and solar leasing companies make it easy for you to sign an agreement on the same day. Some solar panel leases have escalating payments. So when you put your house on the market the value of your panels can be factored into the sale price of your home.

When you re selling a home with a leased solar panel system on the roof there are options outside of canceling the leasing arrangement. Solar leases are typically for a 20 year term and can be costly to buy out. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. But most experts agree that buying a solar system is much more advantageous than leasing it.

Usually a buyout is allowed after 5 to 7 years of the lease. No doubt the solar company will provide you with estimates of savings over the remaining life of the lease but it doesn t hurt to calculate the savings yourself as well. Obtaining mortgage loans with leased solar panels can be a bit more complicated. You pay little or nothing at first and save hundreds of dollars annually on electricity.

For one if you purchase it either outright or through payments you will be able to take advantage of rebates tax credits and other incentives you can not claim if you lease. It usually costs 15 000 to 20 000 after tax credits and can reduce your electricity bill by 70 to 100 percent depending on the size and. When you buy out your lease and own your panels your solar system becomes part of the overall value of your home. The upfront cost for the installation of solar panels on your home can make the option of leasing it more palatable.

The main practical distinction between buying and leasing a solar pv system is in ownership. In this case you can prepay the balance on the remaining lease and have the solar panels either removed or left on the house. If the home has leased solar panels buyers need to find out the lease agreement details including monthly fees and the contract term. You may have one two or all three of these options available depending on the leasing agreement you signed.

A leased system also increases home value but studies show the increase is less than for a purchased system. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. Most solar leasing companies do include a buyout period and price in their agreement.