It’s no secret that going solar can be expensive! But does that mean solar panels aren’t worth the investment?
For many homeowners across the country, with continued rated hikes from their power companies, the chance to own their power with solar is an attractive one. But is going solar trading one high cost for another?
Below, we’ll go over the options for going solar: lease, purchase, or PPA, and which is the best investment for homeowners.
Purchased, Leased, and PPA Solar
If you’re not familiar with solar, it can be confusing figuring out which method for going solar is best for you.
There are three ways a solar company might sell solar to you. The first is a system that you purchase, whether outright or via a financed loan.
The second is a leased system where you are renting the solar energy system. When you lease a solar energy system, you’re paying a fixed monthly payment for the use of the panels and the energy produced, but you will never own the system.
Finally, there is the option of a Purchase Power Agreement (PPA) where you’re allowing the company to install and run solar generation on your roof or land on a system they own, and will be able to purchase that energy at a lower cost than from the power company.
So which is the best investment between these three options?
Most solar experts will agree that actually owning your own system is the best investment. With both leasing and PPAs, you don’t have control over the system itself, and you aren’t able to access things like the Solar Investment Tax Credit for extra savings.
Why Buy Instead of Lease Solar
Let’s go over why it’s a better investment to purchase a solar energy system you own, rather than lease one.
Reason #1: You can’t use the Solar Investment Tax Credit to save 26% on the cost of your solar installation if you don’t own the system. While that may not seem like a ton to lose out on, that tax credit is put in place specifically to help homeowners go solar affordably with systems they own.
Which brings us to our next point…
Reason #2: Homes with purchased systems see an increase in value by 4% on average. Meanwhile, homes that have solar systems which are leased or PPA actually have a harder time on the market, since the idea of having to take over a lease or PPA agreement can scare many buyers off.
But why does leased solar have such a different outcome than owned solar?
Reason #3: With solar you own, you know what you’re getting. Unlike with a leased system or a PPA, where the terms of the contract can be confusing, and you lack certain rights that come with ownership. When you go solar with a leased system or PPA, your contract can even bar you from doing things like planting trees or doing construction on your home.
Why Do Some Homeowners Decide to Lease Solar?
If there are obvious perks to owning solar, why would any homeowner choose to lease instead?
The main reason is the high cost associated with purchasing a solar energy system. Traditionally, those systems can cost upwards of $20,000. Even with the Solar Investment Tax Credit reducing a system that costs $20,000 to $14,800, that’s a big chunk of change many homeowners don’t have on hand.
For homeowners who want to go solar, but don’t have the funds to invest tens of thousands of dollars into a project, a leased or PPA solar energy system might seem like the only option.
Go Solar for $0 Down and Own Your System
There is another option for going solar that doesn’t require you to sink thousands into the purchase, or give up your rights to a leasing agreement.
When you go solar with Purelight Power you’re able to invest in renewable energy for your home with no money down.
It’s not a scam or trick, in fact the way we help homeowners go solar is pretty simple. By designing a solar energy system that produces most or all of the power your home needs, we’re able to wipe out your power bill.
Then, that monthly payment you would have been making to the power company goes instead towards the cost of your solar energy system and owning it outright.
Because you own the system you can claim that tax credit, your system cost for a $20,000 system would reduce to $14,800. If you were already paying a power bill every month that was $125, that now will go towards paying off the remaining amount of your system.
Even with interest from financing the system’s purchase, you’ll have your system paid off in about 11 years. And since solar energy systems last 25 years, that means you’ll see 14 years of energy totally free of cost.
Own Your Solar and Save!
Ready to own solar and see savings every month?
Purelight Power’s $0 down program helps more homeowners go solar with a solar energy system they own!
Find out if your roof qualifies today with a quick survey.
