How to Lease Solar Panels

Learn how to lease solar panels

So many people would like to convert to solar power, yet they are concerned about the upfront cost.  Government is listening, offering generous tax rebates and incentives, but still, it could take more than ten years for your return on investment.  So what else can you do?

Instead of purchasing, you can lease solar panels!  There are a number of reputable companies with which you can do business that will install, maintain and even insure the solar system on your home or business, allowing you to reap the benefits of lower electricity bills and a lighter carbon footprint.

So, you want to learn more?  You’re in the right place.  I will start by saying that before you sign any contract – and a solar panel lease is a binding contract – you may want to consult an attorney.  Because I practice real estate and land use law in the Pacific Northwest, I can offer you general guidelines regarding the contract terms you’ll want to see.

Solar panel leases were featured this week on the CBS Evening News.  The broadcast focused on a woman named Kathy Nalty who really wanted to install solar panels on her home.  She did so through a solar panel lease:

In her typical suburban house, which she shares with kids and grandma, five TVs and four computers, her electric bill went from $200-$300 a month to just $59 a month.

Ms. Nalty is charged $100 a month under the 15-year lease. With her electricity usage down, Nalty says she saves so much on electric bills that she comes out ahead about $100 each month.

Leasing solar panels can defray the initial cost

If you are interested in a solar panel lease, consider the following before you sign on the dotted line (and perhaps hire an attorney to review the contract):

1. How long will you be in your house?  Its best if you will be there for at least 12-24 month – preferably longer!
2. What is your credit score?  If its at least 640, its easier to finance or lease solar panels
3. What is an acceptable term for the lease?  5 years?  Less or more?  Make sure there are not early termination penalties, and/or that you can transfer the contract to a new owner
4. What is the monthly rental?  Will it escalate in the future?  Is it lower than your monthly electricity bills (if not, you might want to reconsider)
5. Can you renew the lease?  Can you assign the lease if you sell your property?  Take a close look at these terms!
6. Maintenance and insurance:  generally speaking the owner of the panels is responsible for these two items.  Make sure that you won’t be charged extra for these services.
7. What happens at the end of the term?  Will the company remove the panels and restore the property?  Can you purchase them for a reduced cost – like a vehicle leasing arrangement?

You don’t have to purchase solar panels to convert to renewable energy at your home or business!  When you learn how to lease solar panels, you can enjoy the multiple benefits of “going green,” without being overly concerned about how to pay for them at the outset.  And, if a lease is not for you, there are many other ways to finance solar panels to consider.

If you have questions or comments, be sure to leave them below.

Tags: how to lease solar panels, install solar panels, lease solar panels, solar panel lease