The short answer is that it is absolutely better to own and not lease solar panels. When you lease a solar PV system for 25 years, you are paying twice or three times more than purchasing it. If you total all the payments during the 25 year lease term, you can install the same solar PV system on 2 or 3 houses for the same cost as leasing for one house.
Yes, a lease offers a 25 year warranty for the equipment but solar pv modules already offer a 25 year manufacturer production warranty.
So why do so many people lease their solar PV system?
The list below are the common reasons why people are leasing their solar pv system.
- They think they can’t afford to own
- They think there is a down payment required to purchase a pv system
- They think they can’t qualify for a loan
- They believe that they would save more by leasing
- They don’t want to get another loan even though a 25 year lease term is just like a loan because you have to make those payments for 25 years.
What are the disadvantages of leasing a solar pv system?
- You pay 2x to 3x more versus owning
- You cannot claim for State or Federal tax credits
- You are renting the equipment, so it does not improve the value of the house.
- More difficulty selling the house since the buyer may not want to take over the remaining lease terms.
For those on Oahu who want to own and not lease your solar PV system with no upfront cost, we have a GEMS/PV Tech unconventional loan.
We do not do credit checks or check your debt to income ratio. To qualify, you just need to be current paying your HECO bill. For more information, please contact us!
Call (808) 983-3333 to learn more about our residential solar PV services and request a free on-site consultation.