Solar Leasing vs. Owning: Which Is Right for You?
by Kelly Anderson, on Mar 13, 2020 3:30:00 PM
Can you save money if you don’t own your system?
If you’ve spoken to a professional about investing in a solar system for your Springfield, IL property, you’ve probably been faced with the question, “Is solar leasing or owning right for me?” There are benefits to both ways of investing in a system, and depending on your age and financial situation, one option may be superior to the other. However, we want to help you understand the different benefits of both. Ready to learn more? Keep reading.
Owning Vs. Leasing
In most cases, homeowners will prefer to own their system. That’s because of the local and federal incentives that help lower the cost of the system. Additionally, they enjoy the idea that they’re paying off a system that they will one day own.
Local and federal incentives include SREC, net-metering, and the investment tax credits. To enjoy the full benefits of the ITC -- a tax credit of up to 26-percent of the cost of your system --you'd need a tax appetite to support it. In other words, you'd need to pay enough in taxes that you could use the entire tax credit. Otherwise, you're leaving money on the table.
For homeowners that don’t have that kind of tax appetite, leasing may be the better option. The zero-down, long term contracts can seem enticing to those who want to switch to solar quickly. However, while you're locked into rates for the extent of the lease, you'll renegotiate once it expires.
How Do You Know Which Is Right for You?
The best way to tell if owning or leasing is right for you is to sit down with a professional, premium service like Summit Solar. Our comprehensive shading analysis will help you understand the benefits of your system before you invest in it.
You'll know accurate estimates of how much sun your home gets throughout the year, how much you could potentially save, and what your monthly payment would be. That way, you won't commit without knowing all the information.
Work with Us Today!
At Summit Solar, we want to customize a solution that saves you money. If we can’t do that, we won’t pressure you into buying a system from us.
If you want a local installation partner that can help you navigate the complex world of going solar, click here or give us a call at 888-884-3557 today!