Switching to solar power is becoming an increasingly popular choice for homeowners across the country. Not only is it a more environmentally friendly source of energy, but it can also help homeowners save money on their monthly utility bills. While the idea of installing solar panels on your home can be exciting, it's important to understand all of the options available to you, including leasing programs. In this article, we'll explore the ins and outs of solar leasing and how it can be a beneficial option for homeowners looking to make the switch to solar power.
So, how do solar leasing programs work?
Essentially, when you lease a solar system, you are renting the equipment from the solar company. Instead of purchasing the system outright, you pay a monthly fee to use the equipment. The solar company owns and maintains the system, so you don't have to worry about any maintenance or repairs.
What are the benefits of leasing solar panels?
One of the biggest benefits of a solar leasing program is that it can be a more affordable way to go solar. You don't have to come up with a large sum of money to purchase the system, and your monthly payments are typically lower than your current electricity bill. Additionally, you can often lock in a fixed monthly rate, so you don't have to worry about fluctuating energy prices.
Who owns the equipment?
It's important to note that when you lease a solar system, you won't own the equipment. However, many leasing programs offer the option to purchase the system at the end of the lease term, usually for a discounted price. Alternatively, you can also choose to extend the lease or have the system removed at the end of the term.
What happens if I sell my home while I am still leasing my solar system?
If you sell your home while you are still leasing your solar system, the lease can be transferred to the new owner. This can be an added benefit to the sale, as the new owner can continue to enjoy the benefits of solar energy without having to pay for the initial installation cost. It's important to note that before the sale is completed, you'll need to have the solar lease transferred to the new homeowner, which is typically a simple process. You'll also need to make sure that the lease transfer is included in the sale agreement.
What are the maintenance and repair responsibilities of the homeowner and the leasing company during the lease term?
During the solar lease term, the leasing company is typically responsible for the maintenance and repairs of the solar panels and other equipment. However, homeowners are still responsible for keeping the panels clean and free of debris to ensure optimal performance. It's important to review the lease agreement to fully understand the maintenance and repair responsibilities of both parties.
How long does the solar leasing contract typically last?
Solar leasing contracts typically last between 20 to 25 years. However, some leasing companies offer shorter or longer contract lengths, so it's important to review the terms of the agreement carefully before signing. Additionally, some companies offer the option to buy out the system at any point during the contract, which can be a good option if you decide you want to own the system outright in the future.
What types of solar leasing is available? There are two main types of solar leasing options available: operating leases and capital leases. An operating lease is when the leasing company retains ownership of the solar panels and is responsible for their maintenance and repair. The homeowner simply pays a monthly lease payment and benefits from the energy produced by the panels. A capital lease, on the other hand, is more similar to a loan. The homeowner takes ownership of the solar panels at the end of the lease term and is responsible for their maintenance and repair. The monthly payment is often higher than an operating lease, but the homeowner will eventually own the system.
What happens at the end of a solar lease agreement?
At the end of a solar lease agreement, you typically have three options. The first option is to renew the lease agreement with the same terms, which may include a new set of solar panels installed. The second option is to purchase the solar panel system from the leasing company at the fair market value or the buyout price specified in the lease agreement. The third option is to have the leasing company remove the solar panel system from your property at no cost to you. It is important to read and understand the terms of the lease agreement to determine which option is best for you.
Is solar leasing the only option to install solar?
No, solar leasing is not the only option to install solar. Homeowners can also purchase solar systems outright or finance them through loans. Additionally, there are government incentives and tax credits available to help offset the cost of purchasing a solar system. It's important to research and compare all options to determine what will work best for your individual situation.
Important Things To Remember:
If you're considering a solar leasing program, it's important to do your research and make sure it's the right choice for you. Be sure to understand the terms of the lease, including the monthly payment, lease term, and any fees or penalties. It's also important to compare leasing programs from different solar companies to find the best fit for your needs.
Here at MetaWatt we are excited to offer solar leasing through SunRun, a leading solar energy provider. We're committed to helping homeowners make informed decisions about their energy needs. That's why we offer a free virtual solar consultation to help you understand your options and find the best solution for your home. Schedule your consultation today and start saving with solar!