Purchasing or leasing a solar system is a significant long term investment.
Many people wonder if leasing would be a better option than buying a system outright. But leasing a solar system comes with significant risks. Make sure you know all the details and read the fine print before you commit to leasing a solar system.
Some questions you will want to ask your solar leasing company before leasing a solar system:
- Will the lease agreement prevent me from selling my house? If I want to sell my house before the lease expires, will I have to buy the solar system? Or will I have to convince my buyer to assume the lease?
- What if I need to replace or repair my roof before the lease period ends? Will the leasing company remove the solar system from the roof or will I have to pay for this?
- Does the lease payment go up every year? What if the cost of utility electricity goes down? Will I be paying more for my electricity in the future? What if the system doesn’t offset as much of my electricity cost as the leasing company says it will? Do I still have to pay the same lease payments?
- Will I be getting good quality materials? Will the leasing company monitor the performance of my solar system to ensure it generates the electricity it’s supposed to?
- What happens if the solar system is damaged or requires maintenance? Am I obligated to pay for that?
- What happens to the solar system at the end of the lease period? Am I obligated to buy it? If I wanted to buy it, how much would it cost? If I don’t want to buy it, who pays for taking it down?
- What happens if the leasing company goes out of business before the lease expires?
Letting someone else make money from your property comes with unique risks. Remember that purchasing a solar system eliminates all of these concerns, locks in your cost of electricity for many years to come, and gives you the peace of mind that comes from being in complete control of what happens on your rooftop.