Do you recommend solar leasing to your clients who are interested in solar?
- No. (56%, 30 Votes)
- Yes. (44%, 24 Votes)
Total Voters: 54
What are your experiences with solar leases? Did you or your clients have any unexpected complications in connection with a solar lease, or solar panels? Share your experiences in the comments section below, and first tuesday will research your concerns in our upcoming article on solar leasing!
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The 30% federal tax credit alone, on a moderate sized 6 kW solar system at the lease and PPA company’s much higher pricing is about $10,000. The botton line is, if you want to give away all of your solar incentives, pay more in the long run and receieve a poorer return on your investment then you should lease. If you want a much lower price and real $0 down financing (an FHA Title 1 solar loan) with tax detuctible interest, while keeping the 30% federal tax credit and any applicable cash rebate, then you should definately buy. Pricing for solar systems have dropped to as low as $1.45 a watt. Add in a $1.00 or less a watt for installation and your at less than $3.00 a watt, installed before incentives. A leased or PPA system will typically be priced at more than double this amount. Get a loan to own or a lease to lose. It’s that simple. Here’s a funny video that depicts some of the pitfalls invloved in leasing a solar system: http://vimeo.com/70888784
Hi Bob
If you work and pay income tax then you actually provided a huge down payment in the form of the 30% federal tax credit that would have gone into your pocket if you purchased instead. You also forfeited Edison’s cash rebate. Add these two incentives to your 20 years worth of lease payment and that’s what you’ will actually pay to rent this system. Also you actually did pay for any potential maintenance and repairs because you would have paid, far, far less for a system if you would had purchased it instead. On the order of 50% (or more) less. Homeowner’s insurance typically covers a purchased system at very little additional cost because it’s attached to your home. The leasing company cannot legally throw a number like 5% as a reduction of cost to determine your purchase price. The system must be appraised by a third party and fair market value is what you’ll pay. Compare what you’ll end up paying, including the incentive that you gave away to a purchase price of less than $3.00 per watt before incentives for a name brand grid tie solar system including emergency power during a power outage to see if you’re getting a good deal.