Should You Lease Solar Panels?

Leasing Solar Panels

For people that want to switch to solar power, the cost is probably one of the biggest hurdles to cross.  Purchasing a solar panel array is expensive, and then you also have to worry about maintenance.  However, if you have wondered if you should lease solar panels, that might be your answer.

Leasing solar panels is one of several ways that can help homeowners and small business owners finance solar power. When you enter into a solar power lease, you don’t own the system, but the terms of the lease agreement could save you significant funds that can help you with your monthly budget.

Consider this list before deciding whether you should lease solar panels

What are your monthly electricity bills?What would the monthly payments be (under a lease or a loan)?Make sure that the payments are less than your average electricity billsDo you have equity in your home?Are you planning on staying in your home for at least the next 12-24 months?Would you prefer maintenance or repair of the solar panels to be done by professionals, or yourself?How much liquidity do you have (available cash?)What is your credit score? (should be at least 640)

Before you enter into a solar lease, check with the Better Business Bureau to make sure that the company with which you are dealing is reputable. Review the official website and make a call to your local Chamber of Commerce to gather information.

Remember that, when you enter a solar panel lease, it is a binding contract. Both sides to the agreement must fulfill their promises, or risk facing the other side in court. Be sure to review every provision in the agreement carefully. Given the value of solar panels, you may want to consider retaining a lawyer to help you make sure that all potential concerns are addressed and there are no overly restrictive terms.

Consider these terms for a solar panel lease:

Lease term: How long will you be leasing the panels (usually at least 5 years)Lease payments: How much will you pay, how often? Is there an escalation clause that gives the solar company the right to raise the rent?Early termination: Do you have the right to terminate the lease before the end of the term without penalty? If there is a penalty, how much?Lease renewal: Can you renew the lease? How? Under what terms?Maintenance of the solar panels: This should be the solar company’s responsibility. Contact information should be spelled out specifically. Ideally, there should be a time stated within which a response must be made in case of damage or failure.Insurance: This should be the solar company’s responsibility – to insure the solar panels.End of lease: What happens when the term is over? Removal of the panels, or will you as a consumer have the right to purchase the panels at a reduced cost? How will that cost be determined?

Tags: install solar panels, lease solar panels, residential solar panels, solar panel lease

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