Did you know that it is predicted that by the year 2024, 2.5% of all the homes in the United States will have solar installation? If you want to jump on the solar bandwagon to save some money but do not have the money for a full solar setup, you might want to consider a solar lease.
We have put together this quick guide to share everything there is to know about leasing solar panels to help you decide whether this is right for you or not.
How Does a Solar Lease Work?
You can compare a solar lease a lot to a car lease. When you lease your solar panels you will not be the owner of the panels but you will receive all of the energy that they produce. In order to keep the electricity they produce, you will simply have to make monthly payments for the panels to the solar company of choice.
A reputable company can give you different options when it comes to either leasing your equipment or owning it. Most lease providers will give you the option to buy the panels once the lease term is over and they will more than likely give you a discounted price.
Lease Price Increase
To avoid any surprises it is good to ask the company you are going to lease from whether or not the monthly lease amount will go up. With most companies, the price does go up once per year and they call it a solar lease escalator.
Usually, the price increase is a percentage of the solar lease cost and normally the lease contracts will last for around 20 years.
You also want to double-check your contract because it has to tell you how much your panels will cost for the entire time of your lease including any lease escalators. By law, this information has to be disclosed.
Who Should Consider a Solar Lease?
A solar lease is perfect for a homeowner that wants to go solar as quickly as possible but is currently lacking the funds. It is also perfect for anyone that does not want to worry about replacing damaged solar panels, an inverter, or other costly system parts.
Keep in mind that when you lease a system then you will not be responsible for maintenance or for a part breaking down. Usually, the company you are leasing the equipment from will keep up with all the parts and will replace them as needed because, in essence, you are renting everything.
Feeling Like a Solar Lease Pro?
We hope that now that you know the ins and outs of a solar lease, you can make an informed decision about whether this is right for you or not.
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