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8th November 2020
Buying Solar Panels vs Leasing Solar Panels
  • BY : Ellen Ra
  • BY : Ellen Ra
  • 8th November 2020

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Buying or Leasing Solar Panels: The Answer isn’t Always Black and White

The push to green energy has meant a shift towards renewable sources. One of the most prominent sources of energy is the use of solar panels. The cost of solar panels has been consistently going down, and the government offers a hefty solar rebate for people looking for a discount. They even provide a solar panel tax credit in some states. This means almost everyone can take advantage of the solar rebates and the cost of solar panels going down.

With these tremendous benefits, you can add solar energy to your home or business. However, there are multiple ways of getting a solar panel onto your roof. The method you choose will determine how much you are required to pay upfront, and the amount you will be paying overtime. A hefty solar rebate can be had, and as the cost of solar panels goes down, this will become an even more attractive option. This is on top of the fact that the solar panel tax credit will get more popular as governments try to influence buying decisions.

Purchasing a Solar Panel

When it comes to getting access to solar panels, you have many different options. The cost of solar panels has been consistently going down as production scales improve, so that trend has meant buying a solar panel has gotten a lot easier. You also have various solar rebates available at the state and local level. Solar panel tax credits are also numerous, so this means you have the opportunity to save when you are buying. The main thing to consider when buying versus leasing is how much you are willing to pay upfront. The cost of solar panels can be daunting if you don’t have the necessary funds to purchase it at first.

You might want to buy your solar panel by using various tax credits or even get a solar rebate from the seller or the government. No matter what you choose, there are many options when it comes to buying. However, a solar panel only costs about $2.50 per watt. Take into consideration that this solar panel will generate electricity for about 20 years, so it will pay off itself in only a few years. We can also take into consideration that the cost of solar panels continues to decrease, so you won’t have to worry about paying that much the more you wait. As mentioned multiple times, a good solar rebate is available to you as well. Governments continually offer solar panel tax credits to those who are looking to save even more off the retail price of a solar panel. There are multiple options available to you for buying a solar panel without having to lease it.

To summarize, even with a solar panel tax credit and a solar rebate, the upfront cost of solar panels will be a lot greater when you buy it yourself. There are many financing options, and the solar panel tax credit is a great way for governments to incentivize purchasing these devices, but it will still cost a lot, which may not be possible for a lot of households. When thinking about buying a solar panel, you have to look at the cost of solar panels and how much money you have to pay for it upfront.

Leasing a Solar Panel

If you don’t have the money to buy a solar panel, then there are many other options available to you. A solar rebate is something that you can check out to deliver the competitive pricing you want. Solar panel tax credits are an option from the federal and state government. A solar rebate can bring down the price of the panel to a fraction of what used to be, and a solar panel tax credit will enable you to save money on the panel and in your taxes. Solar panel tax credits are also effective for other electric vehicles. All of these various price advantages allow you to save money to the government when buying a solar panel. However, leasing a solar panel is often less appealing. The main reason that leasing a solar panel will be less appealing is while the cost of solar panels will continue to plummet, you will pay a fixed price over a period of time. A solar panel tax credit will not be available to you, and the solar rebate will be available to the person who purchased the panel. The cost of solar panels won’t be put on your shoulders, but you also won’t reap the benefits of a good solar rebate and a solar panel tax credit.

Leasing your solar panel will offer severe downsides in that you don’t actually own the panel. You are essentially renting out space on your roof to someone else. That person will get the solar panel tax credit and the solar rebate. You will get all the problems associated with having a giant solar panel on your roof. Your roof will also be a lot harder to clean and maintain. All the potential benefits in the future, like other solar rebates and even a larger solar panel tax credit, will also not come to you. The ultimate downside is you will be paying for the solar panel and a much higher price. The cost of solar panels will always go down as time goes on, so when you lease it today, that is the price that it will be for the foreseeable future. However, these scenarios can benefit you depending on your specific place in the world. A solar rebate might not be all that appealing if you need solar panels to survive. You might not even care about the cost of solar panels if it is something you really need.

On the Grid vs. Off the Grid

One other consideration when thinking about the cost of solar panels is whether you will be having your set up off the grid or tied to it. It’s a solar panel tax credit, and a solar rebate makes a lot of sense for people who are setting up a system off the grid. However, a solar rebate might not be the most important thing in the world for someone who is looking to make a system that is tied to the grid. In that case, a good solar rebate will only make things a little bit better. When you factor in the cost of solar panels, having a solar rebate might not make a huge difference in the decisions of people who are living off the grid. When you are off the grid, a solar panel is a must-have. There is almost no flexibility in making a choice, so you don’t have to worry about whether it is the right decision or not. However, you should check out the cost of solar panels as they change, and look for a good solar rebate whenever possible. It never hurts to pay less for something, and solar panels can often be expensive.

Solar Power Purchasing Agreement

There is another option when it comes to getting solar panels on your roof. The cost of solar panels goes down, and sometimes a solar panel tax credit can disappear, so companies are often trying to innovate in this arena. You can create a solar power purchasing agreement with the company where they put the panel on your roof, and you pay them for electricity. You pay a lot fewer electricity costs, while the company seems most of the risk. However, once the cost and solar rebates have factored into the equation, you end up not having a great deal compared to the company. The company gets to have the solar rebate and the solar panel tax credit that comes from the government. With the cost of solar panels going down by the minute, they also get the major benefit that comes from this arrangement. This is not the recommended way to get a solar panel since it will cost so much compared to the other options. You also don’t have the flexibility since you don’t own anything associated with the solar panel. The cost of solar panels is an important factor when thinking about making a decision in this arena as well.

There are benefits to using this method to get a solar panel. The cost of solar panels means that you can have tremendous benefits from doing such a deal. The main benefit of this is you will have a solar panel on your roof, and that will generate electricity from day one. Why you don’t get a solar rebate or the solar panel tax credit, the cost of solar panels is passed on to someone else. You get the benefit of the electricity generation without having to put up any cash for yourself. The solar rebate might not even be available to everyone, so you don’t end up missing all that much as well. While the cost of solar panels keeps going down, the cost is in the thousands. Not every family will have thousands of dollars to spend on a solar panel. The solar panel can also break, which the company you agree with is the one who will be responsible for all that work. They take on all the cost of solar panels associated with the project, and you worry about offering space on your roof.

What is the difference between a PPA and a Lease?

So what is the difference between a PPA and a lease? The major difference is how the cost of solar panels are distributed, and the solar rebate associated with it. The solar panel is not yours in either situation. However, when it comes to a lease, the solar panel is as good as yours in a functional way, so everything is the same as with someone else who owns the panel. The solar panel you lease will have all the benefits of being owned by you. You essentially pay a fixed monthly cost that you agree to with the person, and why you don’t get access to a solar rebate or a solar panel tax credit, you don’t have to deal with the costs of solar panels upfront. This fact means you don’t have to worry about having any problems when something goes wrong with your solar panel. Your solar panel will continue to generate electricity for many years, and your lease agreement will have you paying the same amount over time.

Ultimately, the best decision you can do is to buy the solar panel for yourself. The cost of solar panels is continually going down, so the solar rebate you get will be even bigger as time goes on. All that means is the cost of solar panels will be even better for you as well. As governments push down the cost of solar panels, you can get a solar panel tax credit from states that are offering. All of these factors mean your cost of solar panels will be impressive compared to the other methods. The cost of solar panels will be better for you when you add in the solar rebate and the solar panel tax credit. These two things make it the best choice.

Other Solar Energy Considerations

When thinking about the solar rebate and the solar panel tax credit, you have to look at how the cost of solar panels will change the market. This is the main factor when it comes to buying a panel for yourself. The solar rebate will change depending on the government in power, and the solar panel tax credit can also change as well. The solar rebate is also something that could go away as governments change priorities, and that could increase the cost of solar panels. For example, the solar panel tax credit might end up being the same as a tax credit for electric vehicles. The solar rebate will also turn out to be the same as for that vehicle as well. Electric vehicles used to have a rebate associated with them, but that changed. Making sure you take advantage of solar rebate and the solar panel tax credit as quickly as possible will help you get the most out of these two deals. Government priorities change, and this can do away with the solar panel tax credit in the solar rebate at any time. This obviously will increase the cost of solar panels to you, so you have to be careful with what you are doing.

Another factor is where you live. In states like California, a solar rebate will most likely be available as the state has made a commitment to supporting solar panels for a long time. A solar rebate there means the state will offer other solar panel tax credits to you as well. This lowers the cost of solar panels to you, which is the main point they are trying to emphasize. Ultimately, getting a solar panel tax credit won’t have a huge impact on the cost of solar panels. The cost of solar panels has been dropping quickly due to overproduction in the marketplace.

What you should get from this is the solar panel tax credit should matter, and you should buy your panel without leasing or using the PPA. Buying and getting the solar panel tax credit ensures that you have something that is yours. The solar panel tax credit will also ensure that the amount of money you have to put down will be less. When you factor in the solar panel tax credit, you end up paying a lot less for your panel and saving in the long term. The solar panel tax credit also has two levels to it, which can potentially benefit you. Some states have their own solar panel tax credit so that you will benefit along with the federal solar panel tax credit given to owners. You have to consider your options and look at what the solar panel tax credit is currently at before you make the right decision for your own needs.

Thank You so much for your time,

Ellen Ra
Love Solar Energy

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