Solar Panel Leasing V.S. Buying: Which Is Right for You?

The upfront cost of a solar panel system can leave even the most eco-conscious homeowner feeling a little burnt. Here at August Roofing & Solar, we understand that financial responsibility can be heavy. That's why we're diving into the world of solar leasing through a solar PPA – a more affordable option for homeowners who want the benefits of solar power without the hefty upfront price tag.

How Does Solar Leasing Work?

A solar company, like August Roofing and Solar, installs and maintains the system for the entirety of your lease. You, the homeowner, enter an agreement with an Electrical Provider who owns your solar system and allows you to pay an affordable, predetermined fixed monthly rate to use the panels. Here's more of a breakdown:

The Electrical Provider: Provides, owns, maintains, and insures the system. They are also responsible for repairs and replacements throughout the solar PPA term of 25 years.

The Solar Company (August Roofing & Solar): Will, after installing your solar panels, communicate with your electrical provider and provide you with repairs, upkeep, and an exceptional solar experience during your PPA term.

You (The Homeowner): Pay a fixed monthly lease payment – that is lower than your current electricity bill from SC Edison. You get to enjoy endless clean energy generated by solar panels and a solar battery, completely eliminating your reliance on the power grid!

Leasing vs. Buying

So, should you lease your solar panels instead of buying? It all depends on your priorities!

Pros to Leasing

Low to No Upfront Costs: This is a huge advantage, especially if your budget is tight. You get solar power without a significant initial investment.

Predictable Monthly Payments: Your solar PPA contract will lock in a monthly rate for the duration of the lease, making budgeting a breeze. All pre-agreed rates are outlined in the contract - so there’s no surprises here!

No Maintenance Hassle: The solar company takes care of your system for you – repairs, cleaning, monitoring all falls in their hands, not yours.

Pros of Purchasing Solar Panels

Solar Tax Credits: Those valuable federal and state tax credits for solar ownership? They’re all yours! You can apply these credits to your utility bill if you still need help from the power grid (when your system is producing without solar battery storage).

More Long-Term Savings: Over a long period of time, you'll likely pay less when owning your solar panels compared to leasing a system.

Increased Property Value: With a solar panel system purchase, you instantly add more value to your home. When it comes time to sell your house, your home will be a local favorite that buyers just can’t say No to.

What To Know Before You Get a Solar Lease

Leasing offers a fantastic entry point to solar, but it's crucial to carefully review your solar PPA agreement. Here's what to watch for:

Fixed Rate: Ensure the fixed monthly rate makes sense for your budget and long-term goals. Compare it to your current electricity bills, and factor in any rising energy costs that are outlined in your SPPA contract.

The Lease Term: Like Sunpower, lease terms last 25 years. Be sure your solar lease term aligns with your financial goals and homeownership plan.

Termination Clauses: Understand the conditions and potential fees associated with early termination of the solar PPA.

Still not sure what a solar PPA lease means for your home? Learn more about what a Solar PPA (Power Purchase Agreement) is here.​

Are You a Perfect Fit for a Solar Lease?

Solar leasing would be the best option for homeowners who:

Prioritize Low Upfront Costs: You want to start saving on electricity bills today without a significant upfront investment.

Aren’t Selling: You aren’t planning on selling your home any time soon.

Cost Predictability: You appreciate the peace of mind that comes with a predetermined fixed monthly rate.

Plan to Own: Many solar leases allow for buyout options, enabling you to own the solar panel system down the line.

At August Roofing & Solar, we're passionate about helping Los Angeles, Ventura, and Santa Barbara County homeowners have access to the energy of the future! We offer a variety of financing options, including solar leases, to fit your unique needs and budget. Whether you're considering purchasing or a Power Purchase Agreement (Solar PPA), our team of experts will guide you through every step, ensuring you make the best decision for your home and your wallet.