Everyday we see the tremendous interest people have in being powered by the sun. The one question that we are always asked is about the 3 main solar finance options to secure a home or business solar system. Between, Leasing a Solar System, Purchasing it or Signing up with a Power Purchase Agreement, Which one is the Best Option? I think the answer is pretty simple and it all boils down to why most of us are looking at solar in the first place.
I think most people look at Going Solar for 1 or more of 3 reasons:
- We want take control of your electrical bill and guard against future cost increases we are all exposed to if we stay with out utility company.
- We want to get rid of our electrical bill
- We want to put our money to work where we get some tangible long term benefits
That being said, if the way you are financing your system does not accomplish these it may not be the way to go.
The best solar finance option is to Purchase a Home or Business Solar System. Here is why.
- With Solar Lease and PPA agreements the payment rarely stays the same for the agreement term. There is typically a payment escalator of 2.99% – 3.99% sometimes even more. Although the agreement is for the payment to increase less than what typically your rate of increase will be from your utility company it still increases. Aren’t we Going Solar to control the increase of our bill? If that is so how can a lease or PPA be in a property owners best interest?
- Typical to leasing a car, when your solar lease is up you have a couple of choices: (a) You can buy it, (b)re-do the lease or (c) give up the system. Giving up your solar system certainly is not part of the mission so you are left with (a)purchasing the solar system or (b)re-doing the lease. Didn’t we want to get rid of our electrical bill? Leasing or agreeing to a PPA is not going to help us, it is just paying someone else for decades. Even if you did purchase after the lease is up, you already paid for it once, during the lease, and now you are going to pay for it again, paying double.
- With a Solar Lease and PPA you are spending your money on a solar system that you do not own and will not obtain any real long-term benefits. With a Lease and PPA the value of your property does not go up, in fact they can decrease your property value. If you sell your property in the future you also have to sell the lease or PPA contract and you get none of the money back that you spent on the system while living at the property.
The idea of Going Solar is not to pay someone else for the rest of your life
The ideaof going solar is to put your hard earned money to work on something you own and control, and provides benefits down the road. Those benefits include increased property value, shielding you against annual utility costs and ultimately getting rid of your electrical bill all together. By choosing the right solar finance options you can increase the overall benefits……all the while helping the environment.
The only way to do all of those is to purchase a Home or Business Solar System. It is the only choice if you want to maximize the value per dollar spent.When you are considering installing a solar system for your home or business weigh the finance decision against the 3 main reasons for going solar and if it is green for all 3…………….it is time to put the sun’s power to work for you.