The solar lease has made going solar possible for many Americans, but there's still little that we know about the long-term implications of the financial structure for homeowners and the industry. Giving up ownership means giving up a big share of the profits of going solar, and it may mean more expensive solar for homeowners.
A typical lease term is for 20 years. With the average home selling in 5-7 years, that means a potential buyer is buying not only a home, but a lease obligation as well. There are many high pressure solar companies out there pushing a solar lease and homeowners may not fully understand what they are getting into.
Having a lease can scare away homebuyers
Solar leases are scaring away homebuyers who don't understand or want the long-term obligation. As the residential solar industry grows, this is something for homeowners to consider.
Credit standards limit transfer of solar leases
The solar leasee usually requires the homebuyer (who will assume responsibility for the lease) to meet certain credit standards. In some cases, this can limit the pool of potential buyers, or require the seller to pay off the lease before selling the home. In such instances, the solar lease is truly a liability.
You give up a 30% tax credit and solar rebates
A leasee does not receive the 30 percent federal tax credit or any local incentives that may exist. The leasing company pockets the 30% tax credit as the owner.
The benefits of owning solar are many. For people who own rooftop power systems, solar adds value to the home - about $25,000 for the average installation in California. Also, you can earn annual returns on investment of 10-30% — depending on your location, state incentives, and property characteristics plus you get free electricity for 25-40 years!
SolarCraft offers many flexible solar purchasing options, including $0 DOWN with monthly payments less than your existing PG&E bill. We make solar ownership as simple and affordable as a solar lease. Read Reviews
SolarCraft, a 100% Employee Owned Company, is one of the most trusted and experienced solar energy contractors in California. Since 1984, this certified Green Business has been providing high quality solar electrical, solar pool heating and solar water heating services to homeowners and businesses, employing licensed and certified solar installers. With more than 6,000 satisfied customers and over 3 million square feet of solar collectors installed, SolarCraft is committed to Quality Design, Quality Materials and Customer Service.
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