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What Should You Know About Leasing Solar Panels?
May 12, 2022
Solar energy is a form of renewable energy that is gaining popularity among commercial users and residential ones. The increase in popularity is due to the tremendous benefits it gives in terms of energy efficiency, cost savings, and long-term durability. Apart from these, there are many other benefits of installing a solar panel for your residential or commercial uses.
However, many people have this belief that solar panels are quite expensive, and buying them will not be a suitable choice for them in the long term. This creates confusion among customers, as they think about whether it is suitable for them to buy solar panels or lease them.
Solar panel leasing has made solar energy more accessible to homeowners who do not have enough funds to install solar panels on their own residential roofs. Though the price of solar panels has significantly reduced in recent years, and many homeowners can install them within their own budget, some people still find it hard to manage their budget and install them.
That is where solar panel leasing comes into play, which has revolutionized the solar industry. With this option, homeowners don’t have to worry about the upfront costs of solar and can enjoy all the benefits of solar energy through a monthly lease payment.
If you are finding it hard to understand the topic of solar panel leasing, this blog post might help you. We will mention in detail everything you need to know about solar panel leasing.
How Does Solar Panel Leasing Work?
Solar panel leasing works similarly to renting a car or a house. It is a financial agreement or commitment in which you agree to pay a monthly fixed rent for your solar energy equipment. Rather than owning it, you rent it from some company. Any kind of installation or maintenance and repairs are included in this monthly payment and conducted by the owner of the solar panels.
Leasing solar panels has made solar energy more attainable for customers who might not have enough cash required for the upfront investment of solar panels. Moreover, the installer is also responsible for installing and maintaining the solar panels. So, you won’t have to worry about them.
The Terms Of A Solar Lease
Every solar panel owner might offer you a different contract for a solar panel lease, but the basic terms tend to be similar. The term length may vary from 10 to 25 years, which is almost equal to the lifespan of the solar panels.
The owner also monitors your system to ensure that it is working properly, and if it needs any kind of maintenance, it is conducted by the owner. The contract of the solar panel lease also includes the price escalator factor and is adjusted according to the increase in the cost of electricity. This means that your lease payment may go up each year.
Advantages Of Solar Panel Leasing
Solar panels have many advantages, especially for customers who cannot afford to buy solar panels or pay the upfront costs. Moreover, some solar panel leasing has zero- down, so you don’t have to worry about a large sum of money.
Because solar energy is renewable energy and an alternative form of electricity, solar panel leasing can help you reduce your energy bills. Saving on your electricity bill can prove to be a big benefit for you.
Most solar panel leasing contracts include the maintenance of the system. This means that you will not be responsible for maintaining or repairing your solar panels, and the owner will have to do it monthly or yearly.
However, this benefit might not be that important because solar panels are incredibly low maintenance. Another advantage of solar panel leasing is that you have predictable monthly payments as they are outlined in your contract.
Although the price of solar panels has significantly reduced up to 70% in recent years, many people still consider leasing them if possible. On the other hand, if you have enough money, buying solar panels is one of the best decisions you can make, as they will pay for themselves in less than ten years.
About Sundawg Solar
Sundawg Solar is the most trusted solar panel installer in Saskatchewan. We offer a 25 year warranty on power production and a ten-year workmanship warranty on all our installations. Learn more about us here or contact us for further information.