Solar power buying vs leasing: Which is better?
Whether you buy or lease, you will save a lot of money by installing a solar power system. You save the most money, and add value to your home, by buying your solar power system. Leasing solar power doesn’t add value to your home, and it can make selling your home more difficult. If the new buyer doesn’t want to take over your lease, you’ll have to buy out your lease and have the system removed.
Buying a solar power system adds value to your home
The amount of value solar adds varies by state, and even by neighborhood. But on average, you earn $1.85 for every dollar you spend on solar. Going solar may also help you sell your home faster. The National Association of Realtors reports that homes with solar systems sell around 20% faster than homes without solar. If your home is in an area where people value “going green” solar may add even more value to your home.
You can’t take it with you. A question that comes up from time to time is: Can I take my solar system with me when I move? The answer is no. Solar systems are custom-built for the home they are installed on, they can’t be moved.
Leasing doesn’t add value and can make it harder to sell your home
Leasing a solar system doesn’t add value to your home. It can also make it much harder to sell your home. You either have to convince the new owner to take over your lease, or buy out the lease and risk eating that cost. Leases are usually for a 20 year period, so if you plan to lease you should also be planning to stay in your home long term.
When is buying a solar system the best choice
Buying is usually the best choice. You save more money than you do with a lease, and you add value to your home. Credit can be a challenge for some homeowners, but in some states, you can finance your solar through a PACE loan. A PACE loan is actually a property tax assessment on your home that is used to finance your solar system. Freedom Forever offers PACE loans for homeowners interested in that option. We also have several zero down loan finance options that can finance your solar system at attractive rates.
When Leasing your solar system is the best choice
If you can’t get financing or don’t want to finance your solar, then a lease or Power Production Agreement (PPA) is the way to go. If you lease your solar panels, you pay a flat rate for the power they produce every month. If you lease using a PPA agreement, then you pay an agreed upon rate for the electricity produced by the panels. Either way, you save a lot of money on the cost of electricity.
Whether you lease or buy, Freedom Forever has an incredible deal for you
Through our network of independent authorized dealers, Freedom Forever offers zero down financing at great rates. If you want to lease your solar system, we have some of the best rates on leases and PPAs. Whichever way you go, you’ll be going solar with one of the top solar energy installers in the country. You’ll save lots of money on electric bills. Should you choose to buy your system, you’ll add value to your home as well.