Uh...did he also mention that your solar lease payment will increase by up to 3.9% a year ?
Year after year !
And if he tells you that a solar system requires lots of maintenance, keep an eye on his nose as it grows longer and longer.
Prices For Solar Have Dropped So Low Since Jan 1 2011, That It Makes Absolutely No Sense To Lease A Solar System Anymore.
The Question Is, Do You Want To Keep All That Money And Incentives For Yourself. Or Give It All Away To Some Leasing Company ?.
The Choice Is Simple
PURCHASE: In many
areas, when you purchase a solar system at today's historically low pricing,
your solar system can easily pay itself off in as little as
4 to 5 years.
And you get to keep all of the cash rebates, renewable energy credits and the
30% Federal tax credit for yourself. And even better, you get to keep all
the electricity that you produce for yourself !
LEASE: When you lease a solar system you'll only save 10 to maybe 15% on your electric bill and be stuck with up to 20 years worth of lease payments with an effective interest rate of 7 to 12%. And be sure to check the fine print for the typical annual payment increase of 3.9%, year after year.
And any cash rebate, renewable energy credits and the 30% Federal tax credit will go to directly to the leasing company instead of you. And to make matters even worse, after making up to 20 years worth of lease payments, you won't even own the solar system that's on your roof. It will still belong to the leasing company ! And good luck if you ever decide to sell your home, because if your potential home buyer wants nothing to do with your high lease payments or can't qualify to take over your lease, then you'll be stuck paying a stiff penalty for breaking the lease contract.
|
Benefits/Drawbacks |
With No Solar |
Solar Lease |
Buy Solar |
|
30 % Tax Credit |
No Tax Credit |
No 30% Tax credit to you. The tax credit goes directly to the solar leasing company because they own the equipment. |
Tax credit applies to you because you own the solar system. |
|
Cash Rebate From Utility Company. |
No Cash Rebate. |
No Cash rebate to you. The cash rebate goes directly to the solar leasing company because they own the equipment. |
Cash rebate is awarded to you because you own the solar system. |
|
Stable Monthly Cost. |
Electric Rates Have Continually Risen For Decades. |
Monthly solar lease payments are increased on an annual basis. An annual lease payment increase of 3.9% each year for 20 years is not uncommon. Beware of this one. It's usually buried in the fine print. |
Fixed interest payments are available from many sources which can lock in your investment. The US Department of Energy publishes a consumer guide for financing solar systems. Click here to download a PDF version of their guide. |
|
Reduction Of Your Current Electric Bill |
No Reduction, Your Electric Rates Will Continue To Rise Year After Year. |
A solar system which is currently being recommended by a popular solar leasing company for a $110.00 per month electric bill in Edison territory would reduce that electric bill by only $11.00 per month after your $59.00 lease payment. $11.00 per month ? Why would anyone let these people climb on their roof for a couple of days, drill lots of holes, install all of that equipment, be legally bound to a solar lease contract for up to 20 years on equipment that they won't own in the end, all for a savings of only $11.00 per month ? We're not exaggerating, you can visit these websites and use their online lease calculators to see the numbers for yourself. |
When you purchase a solar system, you own the system. So unlike a lease, when you finish paying off your loan you're done, that's it. The money that your system will save you on your electric bill will have increased over time because electric rates will rise and this non-taxable income will go right into your pocket year after year, decade after decade. |
|
Consequences or benefits when selling your home. |
Homes with a solar system can sell for more money than homes without solar system. |
If you cannot get your home's buyer to qualify for the solar lease (Remember your home's buyer must have excellent credit to qualify for the lease) or if your home's buyer is not interested in assuming a lease on the solar system then you are obligated to the lease. You cannot break the lease without severe financial consequences. |
Homes that are sold with a solar system included in the purchase price can sell for more money than homes without a solar system. Since you bought the solar system, you own it and you can do whatever you want. You can move the system to your new home or you can sell the system as part of the home's sale which will improve your home's sale price and it's marketability. |
|
Solar System Ownership/Equity After Completion Of Financing. |
No ownership or equity because no system was installed. You will continue to rent evermore expensive electricity from the utility company. |
After paying 20 years of lease payments, you will have zero ownership and will have no equity in the solar system. You will have the option, of extending your lease payments, you may also buy the system even though you've been paying for it for 20 years or you can have the solar leasing company remove the system from your roof. (Ouch, how will they match all of that 20 year old roofing material ? Who say's that they'll even try.) |
After you complete the financing of your solar system, it will continue to produce free electricity for many years to come. In fact the solar panels typically come with a 25 year warranty and have a life expectancy of more than 40 years. Inverters which have a 10 year warranty, have a life expectancy of 12 years. Inverters constitute a relatively small percentage of the overall solar system cost and are expected to drop in price over the life of your system. |
|
Renewable Energy Credits (RECs). |
No Renewable Energy Credits. |
No Renewable Energy Credits to you. The Renewable Energy Credits go to the solar leasing company because they own the equipment. |
Renewable Energy Credits apply to you because you own the solar system. |
|
System Maintenance. |
No system maintenance. Only a high monthly electric bill to maintain. |
No System Maintenance When You Lease A Solar System. That's a good one ! What maintenance ? |
That's the beauty of owning your own solar system. A properly installed solar system needs virtually no maintenance other than a good rain or a rinsing off every few months of accumulated dust on the solar panels with a simple garden hose. |
|
Benefits/Drawbacks |
No Solar |
Lease Solar |
Buy Solar |
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