With energy costs soaring and inflation raising prices across the country, there has never been a better time to invest in solar energy - an option that is far less expensive than buying power from the utility company. Although consumers recognize the clear value of solar, many are still not securing all of the advantages that come with making the switch. That is because so many consumers either lease their solar units rather than buying them or don't invest in solar at all, electing to pay double for their utility cost every month.
The cost to own solar has been reduced to such a level that continuing to lease instead of own could result in throwing away thousands of dollars over the life of your contract. For consumers who are ready to take advantage of the cost-savings of owning solar, the brokers at My Solar Solutions have essential information that can help make the decision even easier before the solar prices skyrocket.
If you look at a typical 25-year lease or PPA contract offered by Sunnova or Sunrun, at the end of those 25 years, the homeowner will be left with one of three options: They can continue their service agreement at whatever the inflated rate of electricity will be 25 years from now, they can purchase the equipment and own the system (which could be outdated and possibly no longer working), or they can have the panels removed and go back to paying the utility for power - which is unlikely because utility costs will be especially high.
The biggest nightmare that can happen with a lease or PPA is the company goes out of business and the homeowner is left with equipment on their roof that no longer works and with nobody to call. By owning the system, the homeowner is protected by manufacturer's warranties. They will always have someone to call, and in the event the manufacturer goes out of business, they can seek out a contractor who can service the equipment for them. Because they own the solar equipment, they have the legal right to work on the system.
Years ago, it was much more difficult to qualify for a solar loan, which made leases and PPAs very attractive. Many homeowners thought leasing or opting into a PPA was the only way to avoid installation costs and the liability of installing a solar system on their roof. However, this is not the case anymore with bumper-to-bumper coverage warranties that are extendable for low costs, interest rates as low as 0%, $0 installation costs, and lower fixed monthly energy payments. Because of these new available options, owning solar has become the obvious choice.
In today's marketplace, solar loan monthly payments are typically less than a solar lease payment. Even if for some reason they are the same amount, the benefit of owning is that the consumers are paying toward an asset they own instead of just another service charge. A homeowner has to pay for energy each month regardless of whether they have solar, so it makes sense to direct their payments toward an owned asset rather than giving money away to their utility provider without ever seeing an "end-date" for utility payments.
It's comparable to the difference between renting an apartment for $4k a month, where the landlord gets equity in the property, or paying a $4k a month mortgage, where every payment goes toward an asset that you own. One day the asset is paid off, and there are no more payments.
At the end of the loan term, the consumer will own the system outright, free and clear of all payments. And because most solar systems are under warranty for the life of the agreement, they will never have to worry about having outdated or nonfunctional equipment, even if they own the equipment.
At the end of your lease agreement you will be stuck with a difficult decision (continue the agreement, buy old equipment, or remove the solar system). However, after financing your purchase, your monthly bill will become zero. Also, you will have spent half of what you would have if you paid the utility company for your energy all those years. Once consumers understand the possibilities that exist for ownership, the decision becomes clear.
Ownership pencils out every time to be less expensive than a lease or PPA, and brokers at My Solar Solutions help make this clear. Leases and PPAs are not bad products and are also guaranteed to save you money. However, due to loans being cheaper than a lease or PPA, and with greater benefits to ownership, if a homeowner can qualify for a loan, that is what most solar consultants recommend.
The brokers at My Solar Solutions help connect clients with the best solar installers in the industry.
Because they operate as a broker and not a retailer, they are not required to promote one specific product such as lease agreements, PPAs, or a particular brand. Instead, they work closely with clients to understand their specific solar needs - and then they deliver the right solution, saving people money, time, and what can be a difficult search process.
With inflation and energy costs rising and more people than ever turning to electric vehicles, consumers will have to contend with more expensive utility bills well into the future. That is, unless they decide now to invest in owning solar. Owning instead of leasing, with zero upfront costs, guarantees savings both in the short term and long term. For those who are ready to make the switch, the brokers at My Solar Solutions are there to help .
Just as it is always a better investment to buy a house than rent an apartment, owning solar is superior to leasing it or paying the utility monthly service charges. When you own your equipment, you really take full control over your energy costs and hedge against inflation rates across the United States.
My Solar Solutions is a solar agency dedicated to helping clients find the right solar solution for their home or business. To learn more about the advantages of owning solar, visit mysolarsolutions.co.
