As the world shifts towards sustainable energy sources, solar power has emerged as a frontrunner in the race to combat climate change and reduce our dependence on traditional fossil fuels. One popular avenue for homeowners and businesses to harness solar energy without the hefty upfront costs is through leasing solar panels.

In this blog, we will delve into the key aspects of solar panels for lease, examining what is involved and weighing the pros and cons of this alternative energy solution.

What is involved in solar panels for lease?

When you decide to opt for solar panels for lease, it's akin to renting a renewable energy system for your property. The process involves several key steps that make it accessible and hassle-free for homeowners.

1. Assessment by solar professionals:

The journey begins with a thorough assessment of your property by professionals of Arizona solar company. These experts evaluate various factors such as the amount of sunlight your location receives, the orientation and tilt of your roof, and any potential shading issues. This assessment is crucial to determine the feasibility and efficiency of solar panel installation on your property.

2. Customized system design:

Based on the assessment, a customized solar energy system design is created by the Arizona solar company to optimize energy production for your specific location. This design takes into account the size of your property, energy consumption patterns, and the available sunlight.

3. Installation of solar panels:

Once the design is finalized and you've agreed to the terms of the lease, the Arizona solar contractors will install solar panels on your property. This process is handled by professional solar installers who ensure that the panels are securely mounted and positioned to capture maximum sunlight. The installation is typically a smooth and efficient process, often completed within a few days.

4. Equipment setup:

Alongside panel installation, the necessary equipment is set up to convert the captured sunlight into usable electricity. This includes inverters, which convert the direct current (DC) generated by the solar panels into alternating current (AC) that can power your home or business.

5. Connection to the grid:

In many cases, solar panel systems are connected to the electricity grid. This allows excess energy generated by your panels to be fed back into the grid, potentially earning you credits through net metering. It also ensures a continuous power supply during periods of low sunlight.

6. Ownership and maintenance responsibilities:

One of the primary advantages of solar panels for lease is that, unlike ownership, you are not burdened with the responsibility of maintenance. The leasing company takes on the task of ensuring the system operates optimally throughout the lease period. Any repairs or maintenance issues are typically covered by the leasing agreement, alleviating homeowners from technical concerns and making solar panels for lease a viable option to consider.

7. Unique use of tax credits

The Federal and State tax credits can save you 30% to 40% off the cost of your solar system, if you buy it, and if you have enough taxable income to use the credits. But, for people who pay little, or no, income tax, these tax credits are useless, if they buy their solar system. When you lease the system, the leasing company owns them and they use the tax credits to reduce the cost of the system, passing on most of those savings to you.

8. Monthly lease fee:

In return for the installation, maintenance, and use of the solar panel system, you agree to pay a monthly lease fee to the solar provider. This fee is often structured to be more affordable than the combined costs of traditional electricity bills, making solar energy an economically attractive option.

Pros and Cons when you opt for solar panels for lease

Pros:

1. Cost savings:

One of the most significant advantages of solar panels for lease is the immediate cost savings. Since you don't have to cover the upfront expenses associated with purchasing and installing solar panels, you can start enjoying the benefits of clean energy without a substantial initial investment.

2. Tax credit advantage:

If you can’t use the tax credits, you can still enjoy much of the savings from the tax credits by leasing your solar panels from a company who passes savings from them on to you.

3. Maintenance-free ownership:

Solar panels for lease typically include maintenance and repairs. This means that if the panels malfunction or require repairs, the responsibility falls on the leasing company rather than the homeowner. This hassle-free ownership model can be especially appealing to those who are not keen on dealing with the technicalities of solar panel maintenance. Look for the best Arizona solar companies that provides quick maintenance support.

4. Quick installation:

Solar panels for lease often involve a faster and more streamlined installation process compared to purchasing. This can be advantageous for those looking to transition to renewable energy sources swiftly.

Cons:

1. Higher cost:

Leasing your solar system is usually more costly than purchasing them over the life of the system. Plus, some leases have escalation factors which increase the monthly payment each year, although usually less of an increase than what utility rates experience. While leasing cost may be higher, it is less expensive if you can’t use the tax credits.

2. Long-term commitment:

Solar panel leases usually come with long-term contracts, often spanning a decade or more. While this ensures stable energy costs, it may pose a challenge if you plan to move or sell your property before the lease term concludes.

3. Ownership benefits:

When you lease solar panels, you miss out on the financial incentives and benefits associated with owning the system outright. These may include tax credits, rebates, and the potential to earn money through solar energy credits or net metering.

4. Limited control:

Leasing means ceding control over your solar energy system to the leasing company. This lack of control can be a drawback for those who prefer to have autonomy over their renewable energy investments.

Final words

While the immediate cost savings and maintenance-free ownership are compelling advantages, it's crucial to carefully consider the long-term commitment and potential drawbacks associated with limited control and ownership benefits. Before making a decision, it's advisable to consult with Arizona solar contractors by searching for solar power companies near me or thoroughly research and weigh the pros and cons based on individual circumstances and preferences. Ultimately, the choice between leasing and purchasing solar panels depends on your specific needs, financial situation, and long-term goals for sustainability.

Sunny Energy is one of the top rated solar companies in Arizona that can help you transition to clean and sustainable energy solutions for your home or business. With a commitment to quality service and cutting-edge solar technology, Sunny Energy as the best solar company in Arizona strives to provide cost-effective and environmentally friendly energy solutions tailored to your specific needs. Our team of experienced professionals is dedicated to guiding you through the entire process, from initial consultation to seamless installation, ensuring a smooth and efficient transition to solar power. Make the switch to renewable energy with confidence, knowing that the best solar company in Arizona, Sunny Energy is here to support you every step of the way.