Solar electricity is one of the most cost-effective renewable energy solutions for companies or residences. Companies that sell solar products are all over these days, but to get the benefits of solar energy, consumers must choose between leasing and purchasing panels outright. 

A solar lease is a long-term agreement between a consumer and a company that sells solar panels. Solar leasing may appear to be a reasonable solution for homeowners who want to meet their energy demands without paying excessive utility bills but don’t have the initial funds to purchase a system. 

Solar leasing is a type of finance in which clients pay a monthly charge for the panels in exchange for the ability to utilize the energy generated by the system. The panels, on the other hand, are not theirs. The goal is to give a handy option for consumers who wish to go green and lower their power costs without incurring the cost of purchasing a solar energy system akin to leasing a car. 

Solar leasing has several advantages. For starters, it lowers a customer’s upfront panel installation expenses. When you use a solar lease, the solar firm, not the homeowner, is responsible for maintenance and accountability for broken panels. You miss out on incentives like local and federal tax rebates since you don’t own the panels. 

Solar leases typically last 20 years and contain a solar lease escalator, which adjusts the monthly amount once a year to reflect current market costs and the energy environment. Many solar leases provide the opportunity to purchase the solar panels at a reduced price after the lease (again, similar to a car). 

Solar leasing was particularly significant in the early days of solar when systems were more expensive; however, as the cost of solar panels has reduced, leasing no longer makes sense.

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