Are Solar Panels Good Idea

Why leasing isn t a bright idea.

Are solar panels good idea. You save money on your power bill without having to spend a cent on having a system installed. Solar installations are realistically available only to homeowners who are financially secure and have good credit. In most cases you ll save much more money in the long run by exploring other financing options like an fha title 1 loan or a traditional loan from your personal bank. For more peace of mind you could choose tier 1 panels which have a better reputation for performance and quality mr barnes suggests getting recommendations and shopping around for installers while avoiding door to door sales tactics.

Solar leasing does have some drawbacks potential lessees should pay attention to. It s important to have a basic idea of how the panels work as well. Even the incentives are designed for those with a decent level of income. A significant detractor when it comes to diy solar panel installation is that the home solar panels you can pick up at home improvement stores aren t as powerful as ones that licensed contractors can buy.

Also known as photovoltaic panels they are mounted on the roof of a house and use sunlight to produce electricity. You pay for the electricity that the panels produce and in doing so over the course of of a 10 to 20 year contract you pay for the system and then some. Solar panels definitely vary in quality. Why loans make more sense than leases or ppas.

Leasing solar panels for your home is not a good idea from a financial perspective. Problems with solar leasing. These less powerful solar panels will not be able to generate the electricity you hope while still being quite expensive. We simply do not recommend it.

For one lessees won t qualify for tax incentives. While certain panels will have higher efficiency ratings than others investing in top of the line solar equipment doesn t always result in higher savings. Thanks to substantial electricity bill savings the average american homeowner pays off their solar panel system in seven to eight years and sees an roi of 20 percent or more. On the surface it certainly sounds like a sweet deal but as we pointed out not long ago free solar panels are not exactly free.

Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. Ostensibly it s win win for both you and the solar company. As states continue to emphasize solar see california s solar panel mandate leasing could be an affordable option for many residents. For example the federal tax credit of 30 is attractive only to those with the income to generate a tax liability high enough to take advantage of it.