Leasing Solar Panels (PPA) Vs. Owning Solar Panels:
The main difference between buying and leasing a solar system is in one simple word: ownership. If you buy a solar panel system, you own the system, either outright (if purchasing with cash) or by financing the investment with a loan. If you lease the system or sign a power purchase agreement (PPA), a third party owns the solar panel system and you are not entitled to incentives & tax credits. The solar company owns the panels for a period of 20 years or more and sells you the power it creates, only allowing you to purchase the system after those 20+ years. In fact, while buying solar panels can add value to a property, leased panels actually lower home value, as prospective buyers must be qualified for your 20+ year lease. Thus, it is far more advantageous to buy and own your solar panels.
Below are some fast facts on both options.
Owning Solar Panels:
- Ensure your system has the best solar panels available.
- Receive lucrative state and federal tax credits.
- Receive NYSERDA solar grants which lower the cost of your solar panels.
Solar Panel Lease Or PPA:
- You are required to purchase the power generated by the solar panels, even if you move or take a vacation.
- If roof repairs are required, you’re obliged to pay the energy company to remove and reinstall the solar panels, as well as any power your panels would have created.
- The amount you are charged escalates, with an average annual increase of 3-5% APR per year.
- Home appliances and lighting are becoming more energy efficient and it is likely that years from now you will be required to purchase power from your solar panels that you will not even need.
The best way to save money on electricity costs is to buy your solar panels, as buying them allows you to receive financial incentives and a property tax increase exemption for 15 years. Plus, with Kasselman Solar, our 25-year warranty covers solar panels and inverters, which are the most expensive components of a solar energy system. Loans are available for as low as a 3.49% APR, allowing you to save money from day one by owning your solar panels.
Don’t let a third-party company own your roof for 20+ years when you can own your solar panels and reap all of the financial benefits!
