Buying Versus Leasing Solar Panels

Major difference between leasing or buying solar panels.

Buying versus leasing solar panels.

Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. Whether you lease or buy solar panels you will save money on your energy bill. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. Buying solar panels long term savings.

The main practical distinction between buying and leasing a solar pv system is in ownership. A lease allows you to take advantage of immediate savings with 0 upfront costs. Leasing solar panels from a solar provider merely give you benefits as a renter of the energy system. Ownership is significant because you can take advantage of the federal tax credit and an increase in equity to your home.

The solar panels become the property of the purchaser after the funds are transferred. One of the biggest disadvantages of solar leases is that you don t get to take advantage of. The only way to receive a 30 federal tax credit on the cost of your solar energy system is if you buy your panels. The primary difference between buying or leasing a solar pv system is around ownership.

We will discuss the pros and cons in this article but first we must address one fact. Difference between leasing vs buying solar panels. Buying involves purchasing the solar panels for domestic or commercial use using the buyers own or borrowed funds. If you don t buy the company you lease from remains the owner of the solar panel system and therefore receives the long term financial benefits.

First understand the difference between buying and leasing.