What’s the difference between all solar financing options? Solaris Renewables is proud to offer solar system purchasing (with or without loans) and solar leases. Let’s look at each financing type in depth so you can understand which is best for you.
Monetary Benefits – Maximized long term financial benefits through the solar renewable tax credit (26% of the cost of the system), net metering, SMART, RECs, etc. Because you own the system outright, you receive the benefits of all financial incentives.
Home Value – With every panel, the value of your home increases. According to Zillow, homes with solar panels sell for about 4% more than homes without solar. On top of that, they sell faster than their non-solar counterparts. A Berkeley Labs study reported similar stats, finding that homes with solar sold for about $15,000 more than homes without. This pattern holds especially true for Massachusetts homeowners. Recently, Redfin found that the sale price increase for solar homes in Worcester, Massachusetts was $45,000.
Maintenance – Most manufacturers have warranties so maintenance and repairs (if needed) are performed by the manufacturer or solar company. Our solar systems are covered for 25 years.
What About Loans?
More Savings than Leasing – The monthly savings from a loan are likely to be higher than the savings from a solar lease. Solar loans are normally paid in 6 to 10 years. You typically need a credit score of around 680 or better to qualify for a solar loan, which can be a hindering factor.
Monetary Benefits – You receive the benefits of all financial incentives (federal, state, and local).
Monetary Benefits – Because you do not own the system, there are not incentives available besides a lower electric bill. There aren’t usually up-front payments, and you typically save 10-30% on your utility bill. You do not need a certain credit score to qualify for most solar leases.
Maintenance – The leasing company is responsible for all maintenance and monitoring of the systems.
If You Sell Your Home – You can actually transfer the remainder of your lease over to the new owner when you sell your home, or purchase the system and include it in the sale price of your home. Leases typically last for 15-20 years, at the end of which you can choose to buy out the system, continue the lease, or have the panels removed.
You Have Options
Choosing a solar financing option can sound difficult. Purchasing offers the most financial benefits over time and might be the best option for a homeowner who wants to maximize their long-term solar investment. For leasing, this option is best for the homeowners who don’t have the capital or credit score. While leasing doesn’t allow for maximum savings and profits from solar, it still reduces the homeowners’ monthly electricity bills significantly. However, no matter the option, the immense environmental benefits and monetary savings from solar energy are clear.
Find Out If You Should Lease or Purchase Your Solar
Chat with us to see if solar makes financial sense for you. We’ll calculate your return on investment and see how much value you’ll get by leasing or owning your system.