• Home  / 
  • Solar Panels
  •  /  Leasing Solar Panels vs. Buying Solar Panels: Should I Lease or Buy Solar Panels in 2018?

Leasing Solar Panels vs. Buying Solar Panels: Should I Lease or Buy Solar Panels in 2018?

Rate this post

As we reach the final quarter of 2018, the solar energy market continues to evolve and improve at a faster rate than ever before. This is why buying your solar panels is going to be your best bet in 2018’s energy market.

In this article, we will be taking a look and some of the pros and cons of buying solar panels vs. leasing them, but before we do there is oneimportant fact that needs to be highlighted,and that is the matter of federal tax.

There is currently only one way to benefit from a 30% federal tax credit on the cost of your solar system,and that is if you go ahead and buy your solar panels as opposed to leasing them from an external provider. If you decide to lease solar panels, then you will be limited to experiencing just a few benefits that solar power can provide, as you will always be a renter and never an owner. This means that the company you decide to lease your panels from will always be the sole owners who will financially benefit in the long run. And isn’t becoming the sole owner of the primary power source in your home for the rest of your life the type of freedom we all desire?

Leasing Solar Panels is Undergoing a Downward Trend

As a homeowner, the decision you make with regards to buying or leasing your solar panels is going to be determined by your long-term financial goals. And there are three main options when it comes to paying for your solar panels if purchasing:

  • Paying in cash
  • Secured loans
  • Unsecured loans

If you want to receive the best return on your investment, then cash up front is going to be the best option for you, if you are in a position to do this. To help you make a decision, here are some pros and cons of buying solar panels that you can consider.

Pros:

  • Your long-term financial savings are going to be enormous, as you won’t have to deal with increasing energy rates
  • You will be entitled to a 30% federal tax credit
  • Some states offer a renewable energy incentive or rebate
  • checkIf you pay using a secured loan, you can deduct the interest paid when completing tax returns in the future
  • checkOwning your solar system entitles you to benefit from all of the financial incentives associated with it
  • checkYou can significantly increase the market value and buying appeal of your home should you want to sell up and move
  • checkNever worry about your electricity being cut off due to routine maintenance or bad weather

Cons:

  • The only significant drawback of purchasing solar panels is the upfront cost that is required. Fortunately, more banks are recognizing the demand for going solar and are now facilitating secured loans.

The Pros And Cons of Leasing Solar Panels in 2018

The Pros And Cons of Leasing Solar Panels

There are a few distinct advantages to leasing panels, but they all revolve around instant gratification. Sure, you will be able to start benefitting from immediate savings on monthly bills,and your lease repayments are still going to be lower than your standard costs each month even after installation.

But when you compare these two positives, to the plethora of negatives, then suddenly taking a loan out to buy your solar panels becomes more appealing.

  • If leasing, you won’t be able to claim a 30% federal tax credit
  • You won’t be able to make interest deductions on income tax returns in the future
  • You will be tied into a contract and be required to make monthly payments on time, if not you could incur penalty fees
  • Alternate Arrow RightThe market value of your home won’t benefit from an increase in value
  • Alternate Arrow RightYou will be paying way over the odds for your solar system over time compared to the value you benefit from when purchasing panels outright

And these are just a few of the drawbacks of leasing. So here is our recommendation:

Buy Your Solar Panels!

Any solar energy expert in the world is going to tell you the same thing. When it comes to installing a solar system- if you want maximum returns for a minimum amount of hassle, then buy.

As solar technology advances, prices are dropping. Largely because solar energy is becoming more mainstream and manufacturing products are more readily available.

A recent survey revealed that homeowners would only have to wait between 5-7 years to experience a complete return on investment, which is encouraging more people to skip the idea of leasing and move straight towards buying a solar system to power their home or small business.

Few people these days are lucky enough to find themselves in a position where they can part with a considerable chunk of cash to pay for solar panels, so taking out a loan is always going to be a feasible option for making a purchase.

Provided you do your research on interest rates and repayments; you can make an informed decision about buying solar panels.

Final Thoughts

Before making any decisions regarding whether to lease or buy solar panels, it’simportant that you always turn to reputable and trusted experts to get your information. It is quite clear that solar power is going to be the future of energy, due to the harmful effects traditional power sources have on the environment.

As people are becoming more affected by climate change, the need for each individual to do their part towards making a positive change is becoming increasingly urgent and apparent. Additionally, when you can have an endless power supply for free, who is going to want to keep paying an electricity provider each month only to be subjected to rising costs and power cuts?

The solar energy market is growing by 24.2% each year,and with more affordable solar panels becoming increasingly available, leasing is set to become a thing of the past.

Leave a comment: