Should I Buy or Lease a Home Solar Energy System
Should you buy or lease your solar energy system? The answer is quite simple.
Today I’d like to talk a little about solar power. Specifically, I want to talk about the differences between buying and leasing a system like this. The two have very different implications, especially when it comes time to sell your property. It’s amazing to me how many of us are unintentionally uninformed about things like this, but I’m here to clear the air on this topic today.
Solar companies usually have an agenda. There are ones who cater exclusively to buyers and there are those who pretty much exclusively push lease or power purchase agreements.
If you’re in the market for a solar power system, I’d advise you to buy the solar whenever possible. Understand that just because you buy the system, it doesn’t mean you have to pay it off all at once. I don’t think a lot of people know that. If you can’t afford to buy the system outright, you can likely afford to buy the system through a loan with some great terms.
When you buy the system, the whole thing is transferable to the buyer when you eventually sell. It helps your equity increase in most cases.
If you have leased the system, on the other hand, you need to be aware that anybody who buys your home will have to qualify to take over the system’s leas on top of qualifying for the home itself. You’re essentially forcing the buyer to take on the responsibility of a lease decision that you chose to make.
Depending on the type of market you’re in, having a leased system could squeeze a significant amount of buyers out from qualifying for your home. This is especially true if you have a home near the median price range.
That’s the primary reason that I always recommend going with a purchase over a lease when it comes to solar energy systems. Not to mention the tax credits that you’ll receive. Those credits go to the leasing company when you don’t buy the system outright.
The first thing you need to do if you’re thinking about solar is to reach out to a real estate agent that you trust. You need a consultant on your side throughout your entire ownership experience. If you have any questions for us or need any help, we’re always here to offer our assistance. We look forward to hearing from you soon.