What’s better, a Loan or a Lease?

If a Lease is an option in your state, most people will benefit more with a Lease than with a Loan.

When you lease solar panels, you are essentially renting the system from a company over a specified period, typically 20 to 25 years. You pay a fixed monthly amount; in return, you get to use all the electricity generated by the system. The main advantages of leasing are that it requires no upfront costs and the monthly payments are way cheaper.

When you buy solar panels with a loan, once you pay it off you’ll own your system outright but your monthly payments will be much higher. This is a result of two things, raising interest rates and much higher financing costs or loan fees. You will have access to the Federal Tax Credit with a loan for 30% but keep in mind that this is not a refund just a credit so your individual circumstances will dictate whether you get any money from it.

Bottom line, when getting solar panels most of us are trying to save money so a Lease gives you a better option because the monthly payments are lower. Ultimately, the choice between leasing and taking a loan for solar panels is yours and depends on your circumstances, including your financial situation, how long you plan to stay in your home, etc. Our advice is just that, advice.

Let us show you the numbers for both options so you can compare them for yourself, plus there is more information that we are eager to share with you.