What you Need to Know Before Leasing Solar Panels

If you are thinking about installing solar panels on your home, but you are not in the financial position to pay for them outright, you might want to consider leasing the panels instead. 

Most solar panel companies offer clients a few different payment options, which encourages people who can’t afford solar systems to lease them instead. This can benefit those eager to power their homes with renewable energy without being in the financial position to pay for them upfront. These attractive payment options help people cut the cost of their utility bills and reduce their carbon footprint. 

Leasing Solar Panels

Leasing solar panels is similar to renting a vehicle. It is a financial agreement signed by both the client and the solar energy company. Most people pay a panel leasing company on a monthly basis, but some companies will offer their clients alternative payment methods. You won’t have to pay a single penny for the solar panels. The solar energy company will also carry out any maintenance or repairs free of charge, so if you need to fix solar lights, the company will take care of them for you. They will also cover the entire installation process too. 

Leasing solar panels might seem like a no-brainer, but there are a few disadvantages to leasing panels that you should understand before signing an agreement with your local solar energy company. 

You’ll End Up Paying More Down the Line

Paying for solar panels, installation fees, and maintenance fees can end up costing the average homeowner a pretty penny. To avoid breaking the bank, a lot of people decide to sign a lease agreement. 

Although you can save a lot of cash without having to pay upfront costs by leasing solar equipment, you will end up paying more down the line. The initial costs are cheaper, you will save a lot of money if you are able to pay for the panels upfront. It might take several years to pay back the solar panels, you will get free electricity bills for many years once the fee has been paid off. If you lease these eco-friendly devices, you won’t be able to get free electricity. 

However, there are some lease agreements that allow you to buy the panels at some stage. Make sure you find out about the different lease agreements available before signing anything. 

Having to Pay Back Multiple Leases Can Be a Daunting Experience

If you are already paying back multiple leases, the thought of taking on another long-term lease can be scary. During these unprecedented times, a lot of folks have found themselves in financial difficulty, and with so much uncertainty, the last thing some homeowners need right now is having to pay for another monthly lease. 

However, the amount of money you can save on your utility bills by installing solar panels should be taken into consideration. Although having to pay back a fee each month for your lease might be off putting, you could save a small fortune by relying on solar energy. Some homes rely entirely on solar energy, meaning you won’t have to pay any utility bill whatsoever.

Leave the Installation, Maintenance, and Repairs up to the Pros

Installing solar panels can prove challenging, especially for those with no previous experience. Many electrical problems can arise, and if you are unfamiliar with the different tools needed and the troubleshooting issues that might occur, then you should consider hiring a reputable solar energy company. 

If you decide to lease the panels, you won’t have to worry about any of these issues. The company will install the entire system free of charge. If any problems arise due to bad weather conditions, you don’t have to worry about repairing the panels because the leasing company will keep all the panels in excellent condition. They will monitor the panels on a regular basis to make sure everything is running smoothly. 

Although modern solar panels are not as problematic as they once were, people are still finding themselves having to repair and maintain their panels regularly. This can cause a lot of frustration, so leasing is often an attractive option for those who want to have peace of mind. 

Conclusion

When buying or renting solar panels, it is of vital importance that you know exactly what you are paying for. Consumers often come across hidden charges when either investing or leasing solar panels, so it might be worthwhile asking the solar energy company to write down everything you need, and what other charges you can expect to pay.

If you plan on selling your home in the near future, keep in mind that leasing solar panels is often a twenty-year agreement. If you plan on selling over the next couple of years, you might want to wait until you have moved into your new home before you lease solar panels.