Lease or buy solar panels: Most recently, we have received questions regarding if is better to lease or buy solar panels. We’ve been in the solar industry for 5 years and as a solar energy broker company we can be really imparcial when it comes to recommendations about one or another type of company, since we represent most of the mayor players in Central Florida.
Lease or buy solar panels?
If you ask a homeowner that went solar… he is most likely going to recommend what he choose and fill up with arguments that sustain his decision. If it works for him doesn’t mean it will work for you for many reasons: roof shape, radiation rates, shade rates, personal credit score, and most important: the representative.
Your solar representative is what makes the real difference because we have seen really good and really bad experiences from the same company. It’s commonly related with how ethic and professional the solar specialist is.
If you want to compare leasing vs purchasing there are a series of questions that can probably guide you understanding better this decision. Remember there is not wrong or right product, it’s just what better meets your specific needs and expectations.
Lease or buy solar panels.
Lease or buy solar panels.
Here are some good question examples:
- How long are you planning to live in the house?
- Do you prefer large corporates or small local companies?
- How big is your monthly average bill?
- Are you planning to increase/reduce your energy consumption over time?
- What is the total average utility rate on a year-long period in your area (cents per kilowatt hour)
- Are you looking for coverage on power outages? (Battery backups or energy storage)
- How do you plan to access solar energy: is it buying cash or financing or a government program or getting approved for a lease?
- If a lease or financing, how good is your credit score, your income, and/or your debt-to-income ratio?
- What is the condition of the existing roof? How long will last?
- What is the average forecast increase of energy in your area?
- What are the product warranties? Production or degradation panel warranties? Installation and labor warranties? What are the roof penetration and leaking warranties you are getting into? Is it good?
- What is the price per watt you are buying or leasing?
- If doing leasing: what is the rate escalator and out contract fees?
- If doing loan: what is the loan term and interest rate? Is it a revolving credit, is there prepayment penalties? Can you pay to principal?
- Regarding the tax credit, please make a call with your CPA or accountant before making any decision on your estimate expected solar payment, before and after the tax credit.
- Is the solar system the main inverter system or a micro inverter system?
- What is exactly the percentage to offset from your utility bill, is it in writing?
- If you are getting more than 10 to 11 kilowatts, most likely you may need to show your home insurance with liability coverage of up to 1 million dollars (not always) but it depends on the utility.
- What are the cancelation terms and conditions?
- How do you get notified on every step of the process and what is the estimated completion of the project? 2 months? 4 months? Very important. Is it in written?
- Does the representative have a proven record of solar projects sold and installed? Usually, the companies do. But does he?
And of course all the question regarding the technology on the panels:
- Are they mono-crystalline or polycrystalline (monos are better)? What is the module efficiency 18% or 23% (if is more than 21% you are fine)? Degradation rates.
- Is the monitoring included?
lease or buy solar panels
The install company is important but in our opinion, it is usually more important (and more difficult) to find an honest and professional solar representative that is able to illustrate the pros and cons of each type of contract or service you are getting into.
If you want to hear more go to www.gocleverenergy.com and book a consultation, we will gladly help you with your decision between a lease or buying solar panels.
lease or buy solar panels
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Get a professional and honest solar quote
Diego and Jennifer, lead a team of solar experts with +7 years experience in over 22 different states in America. We would love to help you switch to solar the right way!
Get a professional and honest solar quote
Diego and Jennifer, lead a team of solar experts with +7 years experience in over 22 different states in America. We would love to help you switch to solar the right way!
