The classic should I buy solar panel or lease it question begs the assessment of your goals. This means, asking yourself what you want to do with it. Do you just want to use the power of renewable energy or are you also trying to reduce your federal tax liability? Let us not get hasty here! There are several points to consider before you could really come to a decision about buying or leasing solar panels. So, let us try to clear the smoke screen and figure out which would be the best option for you.
Why Should You Buy Solar Panels?
Besides reducing your energy bills by up to 30 percent, solar energy can cut down your taxes. Federal investment tax credit would help you to cut your taxes if you decide to buy and install a solar panel. If you are thinking about going green with solar energy for your business, you can present it as depreciating asset and deduce taxes. Buying is also a great idea for people who are thinking about selling their homes in the near future and want to use solar panels to get better prices.
While sorting through the products, consider installation charges, which may range between $15,000 and $30,000. However, rebates can reduce the cost quite a bit. You also need to take care of the maintenance, which rarely puts a strain on your finances. Checking for guarantees and protection facilities while buying solar panels would be wise for you. Hopefully, that will cover your repair and maintenance requirements.
Is Leasing Better than Buying?
In some cases, yes! If you do not want maintenance responsibilities or if you are trying out solar systems for the first time, then you should go for the leasing option. In this scenario, service providers will check your solar panels and they will take care of its maintenance (if need be). Leasing is fairly affordable, and with maintenance out of the picture, you can assess the benefits of green energy without little to no responsibilities, other than making monthly payments to the lease provider.
You should take note that leasing doesn’t offer the advantages of tax credits. So, the chances of you getting your taxes reduced are nil with this choice. Plus, the energy cost reduction would be comparatively less in leasing option than buying. If buying panels can save you more than 30 percent in energy bills, then you would get no more than 10 percent savings through leasing. However, at the end of the lease, you could upgrade the systems for better performance and savings. That is something to look forward to, right?
Regardless of your choice, you would save money by opting for renewable energy as the charges for traditional electricity increase. So, assess your requirements first, talk to professionals if need be, and only then come to a decision. The way you will contribute to the planet when harnessing the power of the sun is no mean bonus as well.