Buying vs. Renting a Home Solar System
Looking for ways to cut costs as a homeowner? Go solar!
According to Consumer Reports, installing a solar system at home can reduce your utility bills by 50 percent or more. And solar systems are here to stay – the U.S. Department of Energy expects 900,000 homes will have a solar component by 2020.
Before you hire a solar specialist, consider how much direct sunlight your home gets on any given day, in any season. Homeowners with more exposure to sunlight will have greater opportunities for savings. It’s also important to evaluate the exterior of your home – an older roof will not be an ideal platform for solar paneling.
If you’ve determined that your home is well-equipped for a solar system, your next step is to decide whether you’d like to finance your own system or lease one from a reputable company. Installation can cost anywhere from $10,000 to $50,000, but you’ll immediately profit once the system is paid for. The government also provides tax credits and rebates which may lower costs overall.
Leasing a system may be a better option if you anticipate rate hikes in the future. A contract generally lasts for 20 years, so talk to your utility provider about foreseeable increases. It’s also a good idea to research past increases to gauge how volatile any changes may be over the next few years. Contracts typically include an escalation schedule that indicates expected payments over the life of the lease, so compare those with information from your utility provider to make the best decision.
Whether you plan to buy or lease your home’s solar system, be sure to shop around for estimates. A professional contractor will suggest the optimal size needed for your home and outline projected savings.
Source: Consumer Reports
Reprinted with permission from RISMedia. ©2015. All rights reserved.
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