The most common question asked about solar financing is whether to buy or lease a solar energy system. The answer depends on your financial situation, plans for the future in the home, and desired savings.
Most San Diego homeowners are choosing to own their solar panel systems with a cash purchase or one of several zero-down loan options. Choosing to own the system allows you to take advantage of the 30% Federal Tax Credit and provides the opportunity to continue saving long after the loan has been paid off.
Leasing a solar energy system for your home will save you money on your monthly utility costs as well. While the savings are usually a little less attractive than owning solar panels, you’ll still save significantly over the traditional costs of electricity from the utility. Leasing carries several other advantages, including worry-free system performance for the length of contract. That means any equipment maintenance or replacement, even after the product warranty expires, is the responsibility of the leasing companies.
Lease terms tend to be 20-25 years and often come with a production guarantee. For homeowners who cannot absorb the 30% Federal Tax Credit, leases are an attractive option. A solar lease allows the third party owner (TPO) to absorb the solar tax credit, then pass some of the savings on to the homeowner.
Contact SolarTech for assistance in determining which solar financing option will be best for you.