When it comes to making the most of solar energy, the decision between leasing and owning your solar panels is a pivotal one. At Solar States, we firmly advocate for the benefits of solar ownership, and here’s why:

1. Owning Your Solar Panels and Home

We believe in the importance of owning your solar panels and retaining full control of your home. When you opt for a leasing agreement, you miss out on ownership of your solar system and may face restrictions when it comes to making repairs or alterations to your roof. Furthermore, selling your house can be challenging, as the new buyer would need to agree to take over the lease, or you would be left continuing to pay the lease even after you’ve moved.

2. Access to Governmental Benefits

With solar ownership, you gain access to valuable governmental incentives. Under the ownership model, you qualify for the Investment Tax Credit (ITC) and have the opportunity to create and sell your Solar Renewable Energy Certificates (SRECs). These incentives are substantial and can have a significant financial impact. Even if SREC prices remain constant at $43 per SREC, this amounts to a value of over $11,000 over the next 25 years, providing a consistent source of passive income. Should SREC prices increase, you stand to benefit from even greater revenue. For instance, in New Jersey, SRECs are worth $226 each and in Washington, D.C., $428.

However, if you lease your solar system, the leasing company claims the 30% ITC, and they permanently retain ownership of your SRECs, limiting your financial gains.

3. Eliminating Electric Costs and Avoiding Rate Increases:

While a solar lease may initially reduce your electric costs, these agreements often include provisions related to regular rate increases. Most solar leases incorporate an escalator, typically between 1% and 5% per year, leading to progressively higher electric costs over time.

In contrast, with loan options, you may pay slightly more initially (or save immediately with longer-term loans), but you are steadily working towards full ownership. Solar ownership offers a substantial Return On Investment (ROI). By investing in solar, gradually paying off your solar loan, and ultimately owning the system outright, you eliminate the need to pay for electricity ever again. With a solar lease, you are perpetually paying for electricity.

4. Increasing Home Value

Solar ownership not only offers financial benefits but also enhances your home’s value. According to Zillow, homeowners who own their solar systems sell their homes for approximately 4.1% more on average. In contrast, selling a home with leased solar panels can potentially lower the home’s value or create complications in the sale process. Typically, new homebuyers must be willing to assume the lease, which can deter potential purchasers.