|
Benefits/Drawbacks |
Solar Lease |
Buy Solar |
|
30 % Tax Credit |
No 30% Tax Credit to you. The tax credit goes to the solar leasing company because they own the equipment. |
Tax credit applies to you because you own the solar system. |
|
Cash Rebate From Utility Company. |
No Cash rebate for you. The cash rebate goes to the solar leasing company because they own the equipment. |
Cash rebate is awarded to you because you own the solar system. |
|
Stable Monthly Cost. |
Monthly solar lease payments are increased on an annual basis. An annual lease payment increase of 3.9% each year for 15 years is not uncommon. |
Fixed interest payments are available from many sources which can lock in your investment. The US Department of Energy publishes a consumer guide for financing solar systems. Click here to download a PDF version of their guide. |
|
Reduction Of Your Current Electric Bill |
A solar system which is currently being recommended by a popular solar leasing company for a $249.00 per month electric bill in Edison territory would reduce that electric bill by $117.00 per month. The lease payment would be $132.00 per month so your monthly savings with a solar lease program would be about $15.00 per month. $15.00 per month ? Why would anyone let these people climb on their roof for a couple of days, drill lots of holes, install all of that equipment, be legally bound to a solar lease for up to 15 years on equipment that they won't own in the end, all for a savings of only $15.00 per month ? We're not exaggerating, you can visit these websites and use their online lease calculators to see the numbers for yourself. |
When you purchase a solar system, you own the system. So unlike a lease, when you finish paying off your loan you're done, that's it. The money that your system will save you on your electric bill will have increased over time because electric rates will rise and this non-taxable income will go right into your pocket year after year, decade after decade. |
|
Consequences or benefits when selling your home. |
If you cannot get your home's buyer to qualify for the solar lease (Remember your home's buyer must have excellent credit to qualify for the lease) or if your home's buyer is not interested in assuming a lease on the solar system then you are obligated to the lease. You cannot break the lease without financial consequences. |
Homes that are sold with a solar system included in the purchase price can sell for more money than homes without a solar system. Since you bought the solar system, you own it and you can do whatever you want. You can move the system to your new home or you can sell the system as part of the home's sale which will improve your home's sale price and it's marketability. |
|
Solar System Ownership/Equity After Completion Of Financing. |
After paying 15 years of lease payments, you will have zero ownership and will have no equity in the solar system. You will have the option, of extending your lease payments, you may also buy the system even though you've been paying for it for 15 years or you can have the solar leasing company remove the system from your roof. (Ouch, how will they match all of that 15 year old roofing material ? Who say's that they'll even try.) |
After you complete the financing of your solar system, it will continue to produce free electricity for many years to come. In fact the solar panels typically come with a 25 year warranty and have a life expectancy of more than 40 years. Inverters which have a 10 year warranty, have a life expectancy of 12 years. Inverters constitute a relatively small percentage of the overall solar system cost and are expected to drop in price over the life of your system. |
|
Renewable Energy Credits (RECs). |
No Renewable Energy Credits to you. The Renewable Energy Credits go to the solar leasing company because they own the equipment. |
Renewable Energy Credits apply to you because you own the solar system. |
|
System Maintenance. |
No System Maintenance When You Lease A Solar System. That's a good one ! What maintenance ? |
That's the beauty of owning your own solar system. A properly installed solar system needs virtually no maintenance other than a good rain or a rinsing off every few months of accumulated dust on the solar panels with a simple garden hose. |
|
Benefits/Drawbacks |
Lease Solar |
Buy Solar |
LEASE IS LESS
Just How Much More Money You Can Make When You Purchase A Solar System Instead Of Leasing ?
How About A 20.9% Rate Of Return For Starters.
|
COMPARISON |
SOLAR LEASE |
SOLAR PURCHASE |
|
System System In STC Watts |
5.64 DC kW |
5.76 DC kW (Slightly larger due to solar panel wattage) |
|
System Cost After |
$0 |
$15,894 |
|
Total Of Payments |
$16,376 Includes the annual lease payment increases. |
$15,894 |
|
System Ownership After |
Zero Ownership Nada, zip. You won't own anything after making $16,376 in lease payments ! |
100% Ownership Which dramatically increases your property value. |
|
Total Savings Over Life Of Service |
$23,040.00 In
Savings |
Remember solar
panels Even if their lease
were 25 years in length, And you wouldn't even
own their system after |
The bottom line is that it would cost you considerably more (probably in excess of $40,000.00) to lease the services of a smaller system that will save you less than half of what a purchased system would save you if both systems were used for the same 25 year period.
CLICK HERE FOR A DETAILED ANALYSIS EXAMPLE OF HOW MUCH MONEY YOU CAN MAKE WHEN YOU PURCHASE A MODERATE SIZED SOLAR SYSTEM
This Is One Document That Your Solar Lease Salesman Hopes You Never Read
Want To Save As Much Or Even More Than A 10 To 20 Year Solar Lease Will Save You Without Signing An Ironclad Solar Lease Contract ?
Here's Some Low Cost Or Even No Cost Energy Saving Tips From The Department Of
Energy That Will Save You A Ton Of Green On Your Energy Bills.
And Here's 13 Energy Saving Tips And A Video From MSN Money.
Tips That Can Save You Far More Than Locking Yourself Into A Solar Lease.
Why Sign A Solar Lease Agreement When PACE Municipal Finance Programs Are Now
Available In Many Areas.
What Is PACE Financing ?
PACE (Property Assessed Clean Energy) financing allows property owners to finance energy efficiency and renewable energy improvements such as solar, that are repaid through an assessment on their property taxes.
Funding is provided through various municipalities (city, county etc.) with a repayment period of up to twenty years at a competitive rate of interest.
Typically, there are no upfront cost with exception to maybe a small application fee or a deposit. And in most cases credit checks are not necessary.
Repayment obligation automatically transfers to the next property owner if the property is sold.
High upfront cost for the purchase of a solar system is the single greatest barrier to entry. The second most significant barrier is the uncertainty as to whether a potential property buyer will pay more for an energy improved property. PACE financing addresses both of the issues because it removes the upfront cost barrier and removes the uncertainty barrier as the new buyer automatically inherits the annual tax surcharge.
And unlike a solar lease, the property owner receives the cash rebate, Federal tax credit and the renewable energy credits, not the leasing company.
Click The Video To Learn More About PACE Financing
Here's a sample of a few of the communities that have joined Colorado's PACE financing program which is slated to begin this Summer.
Alameda, Alameda County*, Albany, Arroyo Grande, Arvin, Atascadero, Atherton, Bakersfield, Belmont, Benicia, Berkeley, Brisbane, Burlingame, Camarillo, Campbell, Capitola, Carlsbad, Carmel-By-The-Sea, Chula Vista, Citrus Heights, Clovis, Coloma, Coronado, Cupertino, Daly City, Davis, Del Mar, Del Rey Oaks, Dixon, Dublin, East Palo Alto, El Paso De Robles, Elk Grove, Emeryville, Encinitas, Escondido, Fairfield, Fillmore, Firebaugh, Folsom, Foster City, Fowler, Fremont, Fresno, Fresno County*, Galt, Gilroy, Gonzales, Greenfield, Grover Beach, Half Moon Bay, Hayward, Hillsborough, Hollister, Huron, Kerman, Kern County*, King City, Kingsburg, La Mesa, Lemon Grove, Livermore, Los Altos, Los Altos Hills, Los Gatos, Marina, Menlo Park, Millbrae, Milpitas, Monte Sereno, Monterey, Monterey County*, Moorpark, Morgan Hill, Morro Bay, Mountain View, Newark, Oakland, Oceanside, Ojai, Orange Cove, Oxnard, Pacific Grove, Pacifica, Palo Alto, Piedmont, Pleasanton, Port Hueneme, Portola Valley, Poway, Rancho Cordova, Redwood City, Reedley, Ridgecrest, Sacramento, Sacramento County*, Salinas, San Benito County*, San Bruno, San Carlos, San Diego County*, San Joaquin, San Jose, San Juan Bautista, San Leandro, San Luis Obispo, San Luis Obispo County*,San Mateo, San Mateo County*,Sand City, Sanger, Santa Clara, Santa Clara County*, Santa Cruz, Santa Cruz County*, Santa Paula, Santee, Saratoga, Scotts Valley, Seaside, Selma, Shafter, Simi Valley, Solana Beach, Solano County*, Soledad, South San Francisco, Suisun City, Sunnyvale, Taft, Thousand Oaks, Union City, City of Ventura, Ventura County*, Wasco, Watsonville, West Sacramento, Winters, Woodland, Woodside, Yolo County*
