Buying a home with leased solar panels is an excellent option to make your home more eco-friendly and saving some cash off your bills.
When purchasing a new house, homeowners have a lot of things on their list. You need to find a home with the right number of bedrooms, enough space to accommodate your family and belongings, and so many more factors.
Lately, people have also started considering buying homes with leased solar panels. The major benefits of solar panels are obvious; they increase the house’s value and help homeowners save money. If you’ve decided you want to use solar panels, you may be confused about whether you should buy or lease solar panels in your new house.
However, making that decision can feel exhausting, so we’ve prepared this brief and informative guide to help you. This article will discuss some primary things you need to know about solar panels, and briefly go over the ins and outs of leasing solar panels vs. buying them separately.
Learn How Leased Solar Panels Work before Buying a Home with Leased Solar Panels
Before you buy a home with leased solar panels, you should learn how those solar panels work. Solar panels have some promising benefits when talking about what they mean to a house buyer.
By buying a home with leased solar panels, homeowners can reap the benefit of the lower cost that comes with renewable energy. Leased solar panels mean house buyers do not need to invest in a complete home system.
In smaller scenarios, you can purchase off-grid solar panel kits to install them on boats, RVs, cabins, etc. On the other hand, it is also possible for property buyers and homeowners to lease their solar energy equipment. This option is great for both small and large properties. Another option that homebuyers can avail is purchasing a system by financing or cash.
By buying a home with a leased solar panel, homeowners can get an exemption from the upfront labor and installation costs. Here, it is essential to keep in mind that you will need to commit to monthly payments.
In a way, solar panel leases are very similar to auto leases in terms of their structural loan payments. When buying a home with leased solar panels, also remember that the lessee does not technically own the solar panels.
Solar panels exist to convert sunlight into energy, which they store in batteries. It is an efficient technology, which is why solar panels are becoming increasingly popular in residential properties. It is especially ideal in regions with a lot of sunlight as they will make more electricity and save more money.
Key Differences between Leasing and Buying Solar Panels
No matter how you source your solar power, solar panels perform the same function and serve the same purpose. So, should you buy a home with leased solar panels or buy the panels separately? Learning about the key differences between the two can help you make a more informed decision.
Leasing Solar Panels for Your Home
Leasing solar panels is only possible attainable for property buyers unwilling to make an upfront investment. It is an ideal choice if you do not have the cash reserve to buy your solar power. However, leasing solar panels means you will never own the system. Instead, a thirty-party owner will own your solar panels.
Buying Solar Panels for Your Home
Buying solar panels is similar to buying any other investment. Depending on where you’re purchasing your solar panels, you may or may not get a payment plan. Usually, additional credits are available based on the manufacturer’s or state’s reimbursements. That said, homeowners still need upfront cash to invest in solar panels for their houses.
Benefits of Leasing Solar Panels
As already discussed, homeowners can either purchase or lease their solar panels. Buying a home with a leased solar panel is ideal if you want to save on installation costs. Given that the ownership of the solar panel system is the main difference, the option is not so bad and comes with several benefits. Let’s look at some of the perks of leasing solar panels for your new house.
Reduced Electricity Usage
The purpose of a solar power system is to convert sunlight into energy that can be used to run electrical appliances. Therefore, you can reduce your electricity usage and significantly save on utility bills.
However, the money you save on electricity bills depends on several factors. Your energy costs will vary based on your local utility rate and the amount of solar energy generated. Additionally, some parts will also depend on the energy your utility pays you when you return it to the power grid.
Increased Property Value
Buying a home with leased solar panels generally helps increase a residential property’s value. Besides energy bill savings, homeowners can also take advantage of the additional value of homes with pre-installed solar panels.
Typically, houses with solar panels sell for 4.1 percent more than similar houses. So, homeowners get a better resell value when buying a home with leased solar panels.
Larger Grid Independence
Reduced grid dependence is one of the best benefits of installing solar panels in your home. The “off-the-grid” system allows you to stop relying on local utilities to provide your home with power.
Additionally, you can choose the amount of connectivity you want to have on the power grid. For example, you can get a partial connection if you still want to work with more utilities.
While solar panels have significant benefits, it is crucial to realize that the systems can cost a lot for installation. Therefore, leasing solar panels is a much better option than purchasing them.
Factors to Consider when Buying a Home with Leased Solar Panels
Here are a few things to remember when purchasing a house with leased solar panels.
Assess the Documents Thoroughly
Leasing solar panels is a legal contract, so homeowners should treat it like one. When handed the documents, make sure to take out the time to read them carefully. You should understand the complex legalities clearly before you finalize your deal. Some essential things you need to review include the solar system documents, contact details of the solar leasing company, and the recent version of the solar system loan.
Assess the Solar System for Efficiency and Quality
Besides checking the legal documents, assessing the system itself is also critical. Ideally, homeowners should know some basic information regarding the manufacturer of solar panels. By doing a little research you can learn more about the available coverage and warranties. Find out everything you can about the type and size of solar panels.
Bottom Line
Buying a home with leased solar panels is ideal if you don’t want to pay the high solar panel system installation costs. Sure, you might need to take a few measures to ensure a smooth transition, but doing so can result in a painless and cost-effective procedure. Solar panels can help cut down on electricity usage, saving you significant money over time.
