Leased vs Owned Solar Introduction

As the world embraces cleaner energy solutions, solar power systems have gained prominence in residential properties. When purchasing a new home, you’ll encounter a pivotal decision – whether to opt for a leased or owned solar system. Both avenues have distinct advantages and considerations. This article delves into the contrasts between these choices, offering insights to guide your decision-making process and ensure it aligns with your preferences and objectives.

Leased Solar Systems: Advantages and Disadvantages:

Leased solar systems involve renting panels and the energy they generate from a third-party provider. Initial costs are often minimal, making it an appealing choice for cost-conscious buyers. Immediate energy cost savings are a highlight, with maintenance responsibilities falling on the leasing company. However, potential drawbacks include escalating lease payments, limited system control, and potentially lower long-term energy savings compared to an owned system.

Owned Solar Systems: Advantages and Disadvantages:

Purchasing a home with an owned solar system entails buying both the property and the solar system. While the upfront investment might be higher, the benefits over time are substantial. Ownership translates to energy ownership, leading to substantial long-term energy savings. Furthermore, complete control over the system, including the ability to upgrade, becomes a powerful advantage. The drawback lies in the initial investment, offset by subsequent energy savings and increased home value. Generally, owned solar systems have a significantly higher financial return than leased solar systems.

Financial Considerations:

In the financial context, leased systems offer low upfront expenses and immediate energy savings. However, accumulating lease payments may counteract initial gains. In contrast, owned systems demand a larger initial investment but provide superior long-term savings potential, along with potential tax incentives and amplified home value.

Resale Value:

The divergence in resale value between homes with leased and owned solar systems is significant. Homes with owned systems generally command higher resale prices, as the new owner inherits energy savings. Conversely, homes with leased systems may confront complications during resale, as lease continuation becomes a factor. The home buyer has to cary out the solar lease or power purchase agreement(PPA), until the end.

Control and Flexibility:

Ownership bestows comprehensive control over the solar system, enabling upgrades, expansions, and adaptations according to evolving energy needs. Leased systems tether homeowners to lease agreements, limiting flexibility.

Making an Informed Decision:

Selecting between a leased and owned solar system hinges on financial status, long-term objectives, and individual preferences. Leased systems offer quick savings and nominal initial costs, while owned systems grant control, substantial future savings, and augmented home worth. Weigh the advantages and disadvantages thoughtfully, aligning your choice with your forward-looking vision. Remember that most solar leases and PPA’s include buy-out clauses that can be exercised when the property changes ownership.

Conclusion:

The choice between a leased and owned solar system presents distinct advantages and considerations. By evaluating your financial capacity, energy aspirations, and plans for the future, you can make a decision that resonates with your goals and contributes to a more sustainable and environmentally conscious future.

Ask your solar inspector – many times, they will be able to tell if the system is leased or owned.