Avoid Paying More For Solar Energy
Direct ownership, either cash or financed, gives clients a tangible product. Once the modules are installed on the owner’s roof, they belong to the client; not a 3rd party company. The homeowner gets to receive all of the benefits of the solar array.
In a leasing scenario, modules are installed and an agreement is signed for a period of time that the modules will be on the roof (the life of the system). During this time, the customer is given a lease option (for equal or less than their current electricity bill) to buy energy from the 3rd party company.
The energy is purchased in year one and subsequent years with a rate escalator around 2.9%. This means that during the life of the system, the customer’s initial payment for solar electricity will increase over time, and ultimately could cost the consumer as much as they were paying prior to integrating solar.
Customers who choose a leasing option are not eligible for the valuable tax credits that often make a solar system much more appetizing to the consumer. The leasing organization gets to take advantage of the sunshine on the customer’s roof, resulting in very little benefit to the actual consumer.
On the other hand, a cash purchase or small affordable loan option, allows the customer to own their solar system outright and reap the many benefits of solar at their residence.
Direct Ownership Benefits
- Harvesting clean energy from a renewable energy source
- Saving money overtime by paying little or no electricity bill, and ultimately receiving a solid and stable ROI (return on investment). This investment is more secure than a 401K retirement account. These savings can be utilized for much more important life events.
- Clients who invest in Solar today, can take advantage of decreased module cost – resulting in lower installation costs for the consumer.
- Customers also have the option to plan ahead and implement products (i.e. inverters) that pair with off-grid application as better and more efficient battery options begin to emerge into the market.
Leasing Pitfalls
- Homeowner does not get to take advantage of valuable tax credits.
- Rate escalator means you could eventually pay more for your electricity than you were initially.
- Leasing companies often suggest they are the new power company in town. Our response is that the homeowners are the new power company, and they should control the market.
- Leasing takes away rights to your roof. Homeowners no longer own their roof or the energy being produced. The leasing organization gets to take advantage of the sunshine, resulting in very little benefit to the actual consumer.
- Purchasing or selling a home with a solar lease diminishes value and creates hurdles. IN comparison, Direct-owned solar enhances the value of your home; not diminish it.
