Solar Financing – a Better Investment Than Leasing Solar Panels
Solar power is the way of the future and more homeowners are turning to solar panels as a way of generating energy for their homes. But there’s a debate between leasing solar panels and buying them and more consumers are opting for the latter as it comes with a myriad of advantages and benefits over the long-term. In most cases, the return on your investment alone could be the best reason to buy instead of lease and with so many attractive solar financing options available, purchasing your solar electric system could pay itself off in as little as four to five years.
Financing for Solar
The costs of solar installation loans are so low at the moment that financing a purchase still puts you ahead when compared to opting for a lease. Just consider the average cost of electricity for an American home. Most houses use 1 kilowatt per hour and with about 730 hours inside a month, that breaks down to a cost of roughly $73 per month on your bill. But not every household uses the same amount of appliances and electronics, nor is each house the same size, so those who rely on significantly higher usage rates could be paying three times or more. This doesn’t factor in the difference in rates around the country.
The size of the home and the number of panels necessary can also vary greatly so your costs could range anywhere from the low to mid five figures. When you shop around for your solar financing, calculate your payment to rival what you would be paying in utility costs to the electric company. Should you be able to arrange it so that you are paying about the same or just a bit more, just remember those payments will end once your loan term expires. Your system will continue producing power long after your loan is paid in full and, over time, your utility bill could be cut by hundreds of thousands of dollars.
Loans for Solar
Seeking out solar installation financing can actually help you save much more on a purchase of solar panels rather than leasing them. Buying a system with solar financing also enables you to take advantage of all the possible federal tax breaks and local benefits, while leasing does not. Even worse, some leases come with escalation clauses that call for an increase in what you could be paying per kilowatt per hour from year to year. Though minimal, the increases can add up fast cutting into your savings that come from owning a solar electrical system. Buying with solar loans, even with the interest that comes with them, could still keep a substantial amount of money in your pocket.
As a homeowner you want to maintain as much control over your residence and the property on which it is located. When you buy solar panels you make all the decisions as to how many panels are installed and where they are located on the roof. There are too many horror stories of homeowners who didn’t confirm either with their leasing company before signing on the dotted line and they were stuck with something they weren’t expecting on their home. Leasing can also make reselling your home difficult as many lease agreements can run as long as 20 years and buyers may not want the hassle of dealing with the lease. That’s why exploring your options for solar installation loans can be such a smart move since you’ve made the purchase outright and there are no leases to worry about nor costly buyouts to get out of the agreement.