Need financing? Clayco Electric suggests buying or financing your solar system over leasing the solar system. Here’s a few reason why.
A lease is not an investment. I often advice people to look at purchasing a solar system as a long-term investment. I want to emphasize that a solar lease is not an investment – you do not have ownership of the solar system itself (you have no assets). A solar lease is a long-term commitment of 10-20 years of lease payments. Would you financially commit yourself to rent a home for 10-20 years?
Solar leases may reduce your home value. You will find leasing companies that advertise increased home value with their solar leases. In some cases, this is true (homes with lower electricity bills tend to be worth more). However, a solar lease can also be a hindrance when you`re trying to sell your home. Finding a buyer that qualifies with excellent credit and agrees to assume your solar lease can be tough. Alternatively, paying yourself out of the lease can be very costly.
A lease can come with a fixed, escalating or de-escalating payment plan. You`re only saving money if the utility bill savings actually exceeds the lease payments. No one really knows where the electricity price is at ten years down the line. Likewise, no one knows what solar systems will cost in the future either.
You save money by buying. There is more money to save if you purchase a solar system in cash. As the owner of the solar system, you receive all the rebates and the 30% tax credit, and most systems pay for themselves within 5 years.
Clayco Electric can help you with your financing if needed. We offer programs like Ygrene, Hero and credit union loans. Call today to discuss.