Solar Lease Calculator
Solar power systems were once an expensive industry to break into with an average salary. When solar power first arrived it was largely catered to wealthy individuals and businesses who wanted freedom from the governmental utility grid.
Thankfully, solar power technology has evolved with more affordable systems emerging on the market. Additionally, there are ways of calculating solar metrics from solar energy calculators to solar angle calculators, which makes life a lot easier.
Additionally, solar has become a lot more affordable through leasing and renting equipment. This allows everyone to have access to solar regardless of the price, especially for those who don’t want to pay the initial fee or want to test out solar before deciding to buy.
The following article discusses whether or not solar leasing is worth it financially or if you’re better off buying your solar system wholesale.
Additionally, we cover the prices involved in solar leasing and how much you save on your electricity bill.
Is Solar Leasing For You?
If you’re desperately looking to break into the space of solar energy but are concerned about the initial costs of installation and maintenance, then your next best option is to lease solar equipment.
Leasing solar equipment is slightly different from purchasing your solar panel system, but you still have access to the entire array of solar benefits.
When you lease solar equipment, you don’t become the owner, but rather pay a monthly charge that makes it easier to finance your solar panel system without having to break the bank.
If you’re new to solar energy and aren’t clued up in the intricacies and maintenance involved in solar system upkeep, then leasing is the best option for you.
Leasing solar equipment means that you aren’t responsible for the maintenance, upkeep, and operations of the solar system. All the responsibilities fall onto the owner that it’s being rented from.
This saves you from the headaches of spending extra cash and arduously trying to fix faulty solar equipment.
Is It Worth It
As with all solar systems financing, there are pros and cons, especially when considering the option to lease a solar panel system.
Ultimately, there are zero costs associated with the initial installation of your panel system if you decide on the option to lease. Purchasing your solar panel system can cost anywhere from $18,000 and above.
The company that owns the solar system will cover all these costs, which is a huge advantage to those who want to avoid the massive financial installation fee, along with future maintenance fees.
The monthly fees of leasing your solar panel system can range between $50 to $250 but also depends on a variety of other factors such as daily energy use and the type of solar system you decide on.
Ultimately, this fee is incredibly affordable considering that the average household spends approximately $120 on monthly energy bills.
Obviously, you need to figure out how much you spend on electricity on an average month, but we’ll use the $120 value as a baseline for our calculations.
While there is no initial fee and the monthly costs are seemingly low, there are some things you have to take into consideration before making your final decision.
Solar Leasing Considerations
While solar leasing is a popular option among homeowners, there are certain cons associated with this method of payment.
One of the most common cons is that your monthly savings will not be as high as if you were to buy your solar panel system. This deduction is largely brought about by not being able to benefit from federal tax incentives.
Additionally, there is a 3 percent increase each year on your monthly installments which can also lead to fewer savings in the long run.
Lastly, a leased solar system adds no additional value to your home if you are looking to sell your home in the future. It can become difficult to convince buyers to agree to the existing lease, which can last up to 15 years.
A 4 kW solar system is normally around $80 a month and produces enough electricity for the average four-person family. It also produces around 1,000 kWh per month, which is perfect for our calculations.
Let’s remember that the average cost per kWh in the US is around 11c, so for every kWh we generate, we’re not spending that money on utilities.
Given all the above information, the calculation you need to do to work out if a solar lease is worth it for you is this:
Total Energy Savings – Total Lease Cost = Total Savings
You can do this calculation over the whole lease period, but it’s probably easier to do it over one year and extrapolate it out. This is best since, while you can account for the increase in monthly lease payments, you can’t account for the increase in electricity costs, especially over as long as 15 years.
So, here’s what an average equation looks like:
(1,000 x 0.11) - 80 = $30
So, in this calculation, even though you’re paying someone else $80 a month for their equipment, you’re still walking away with an extra 30 bucks in your pocket at the end of the month.
Solar energy is becoming increasingly popular among households worldwide with many more people being able to afford solar systems thanks to solar leasing.
If are wanting to make the switch but don’t have the funds for the hefty initial installation fee, then solar leasing is the more suitable and affordable option.
Of course, if you do have the money to purchase your solar panel system, then you should go ahead, especially since the long-term financial benefits and savings are greater.
For the best solar panel systems visit Shop Solar Kits. We have a wide variety of solar panel systems suited for every type of household or business. There is also the option to join our solar panel affiliate program.
Additionally, we can suggest the best way to finance your solar system in line with your budget and provide you with one that is suitable with the peak sunlight hours map for your area.
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