You probably wonder how solar leasing work and weather is right for you or not? we can start by saying what it is not, not owning solar system and not to able to use Rebate or 30% tax credit and not to mention 20 years of contract and all that said and done the system will cost 3 times and basically save fraction of your electrical bill, We are here to give you facts and nothing but facts, if there is anything we need to do to improve, please let us know.
Lets start with few facts to consider signing the lease contract
The new potential home buyers must qualify to assume the lease with an excellent credit score. If don’t qualify, then home owner will be forced to pay off the lease in a lump sum in order to sell the home. Solar lease obligation must be disclosed before signing.
Many solar lease companies argue that by having solar system on roof of the house should make home more desirable to purchase. This would be true if owned not leased.
Many Believe that leasing a solar system could cost less because there is no $0 down and $0 out of pocket, but in reality you pay lot more than what think, to start with
A) you don’t get any rebate or tax credit (that itself almost 40% that you surrender to the leasing company)
B) if you add up your monthly utility and leasing cost for 25 years, then you will see that your system will cost 3 times of its value.
By Charging more for solar system the wall street investors using Tax credit to make change it in to cash.
Is it really $0 down? ,,, No it’s not, and here why, When home owner sign agreement with leasing company then they sign the 30% tax credit and rebate to them
Does leasing cover 100% of the bill? technically yes but you will see only 15% to 20% reduction for your electrical portion of the bill and remaining $$$ balance you have to send payment to utility and or leasing company.
Any Maintenance with solar system? well, other that washing down few times a year with water and after 10 to 15 years to change the inverter
Many thinks you can upgrade the system with leasing,, that is not true, you have to wait 20 years until your contract is finished
Most of solar leasing companies add what’s known as a payment “escalator” into their contracts that will increase your monthly solar lease payment by up to 3.5% per year for 20 years and if your utility company is ever mandated to lower their rates, you could end up paying more for your electricity than if you never got involved with a solar lease or PPA to begin with.
One of the largest solar leasing company’s in the country makes it quite clear in their contract that if you are more than 10 days late on your lease payment that they have the legal right to remove the solar system, charge you for the removal and then sue you for the balance of the payments that you owe on your lease as well as other fees and penalties.