Solar Leasing vs. Solar Purchasing

Consequences of Leasing

  • 30% Tax Credit
    • 30% tax credit goes to leasing company.
  • Stable monthly costs
    • Solar lease payments usually increase 2% to 3.9% per year. (acceleration clauses)
  • Reduction of your current electrical bill
    • The lease payment replaces the electric bill. You only protect yourself from future rate increases.
  • Consequences or benefits when selling your home
    • New buyers must have excellent credit to qualify and sellers cannot break the lease without financial consequences.
  • Tax benefits
    • With solar lease, you cannot write off lease payments as a tax deduction.
  • System upgrade
    • You cannot upgrade or modify the solar system for the entire term, of the lease contract.
  • Solar system ownership / equity after completion of financing.
    • 20 years of lease payments = zero ownership. The bank will determine the price of selling you the system with no credits.
  • Backup power during a power failure.
    • You can’t upgrade or modify your leased solar system or you will be in violation of your lease contract.

Benefits of Purchasing

  • 30% Tax Credit
    • Tax credit applies to you because you own the solar system.
  • Stable monthly costs
    • Solar finance has fixed low monthly payments.
  • Reduction of your current electrical bill
    • You will save more as rates increase. This non-taxable income will go right into your pocket, year-after-year.
  • Consequences or benefits when selling your home
    • Homes with solar sell for more money than homes without. You own the system and can move it or sell it with your home.
  • Tax benefits
    • Loan interest can be tax deductible.
  • System upgrade
    • When you own your solar system, you can add panels or modify at any time.
  • Solar system ownership / equity after completion of financing.
    • Your system will continue to produce free electricity for more than 40 years.
  • Backup power during a power failure.
    • You can purchase or upgrade to battery backup any time.

Don’t lose out on your 30% Tax credit by leasing a solar system!