Solar power is changing the way the world does energy. As solar systems become an affordable option in the energy conversation, homeowners are wondering whether to lease or buy them. The sun provides enough energy to power the universe, and solar harvests this free energy. What makes this energy really free? Should you buy your system or rent it?
Every day the sun rises with enough energy to power everything. The sun translates into electricity for anyone with a solar system. The system “catches rays” and directs them towards a converter that turns the energy to electricity. What makes the sun’s energy free is when a homeowner buys their solar system (the only exception being when a home uses more energy than the solar system generates, in which case the homeowner must buy energy from the electric company).
Buying and Leasing
A homeowner should only buy a solar system if they own the home and plan on it living in it 6+ years. This gives the homeowner time to pay off the system, and experience free energy.
If a homeowner leases a system, they would pay about the same a month as they did for electric, except for cleaner energy. If the homeowner chooses to sell the house, they are relegated to a market of people willing to lease solar energy. All in all, leasing a solar system lessens the chance of selling your house.
Buying Means Free Energy
Leasing the system disincentivizes the switch to solar energy. Switching to solar without buying the system means you rent your energy, which is the reason the homeowner left the electric company to begin with. Solar is about taking advantage of free sunlight. It is only fully taken advantage of when it is free. Though leasing a solar system is good for the environment, it does nothing for the homeowner’s wallet. They will rent energy just like they did with the electric company.
Rebates And Returns
Another reason the homeowner should buy their system is because the government incentivizes it. Purchased solar systems receive 30% tax rebate from the system’s cost, a refund that further motivates the investment. The government continues to prolong this rebate and for good reason. The prices for conforming solar systems are down 20% from last year, and solar sales are higher now than ever. The solar industry is predicted to triple in size, as reported by GTM Research and the Solar Energy Industries Association (SEIA). Should a homeowner lease their system, they will not receive the rebate. The rebate is in place to encourage potential solar clients to buy a system, not to lease it.
Although leasing is easier and requires less up front, the benefits aren’t so sunny. The homeowner will only experience modest savings, and will never experience the paybacks buying a system brings. The two major paybacks include the 30% tax rebate, and the endless amount of free energy after the system is paid for. Leasing is like buying energy from the electric company, just under a different covering. While leasing a solar system may save the environment, it will not save your wallet. Save both by investing in a solar system. Addy Solar recommends that you buy your system, and that you buy one from them. They create custom solutions to meet your energy needs.