Home solar panels can help people save a lot of money in the long term.
But the upfront cost of installing new solar panels can exceed $10,000. So in many states, homeowners can lease solar panels.
Larry Sherwood is chairman of the Interstate Renewable Energy Council.
Sherwood: “Obviously it’s a lot easier to pay as you go than to invest a lot of money in the first place.”
With solar leasing, homeowners essentially rent solar panels and use the power they produce, which lowers their overall energy bills.
The rental company usually takes care of maintenance and repairs of the panels, so leasing also saves the homeowner money on maintenance costs.
But one drawback is that people who lease solar panels are not eligible for solar tax credits.
Sherwood said they also need to double-check the terms of the lease to understand what will happen to the lease if they decide to sell.
Sherwood: “You don’t want to be worrying about a lease during that very busy time.”
But for those who can't afford the upfront cost of new solar panels, solar leasing can be a cost-effective way to switch to clean energy.
Reporting credit: Ethan Friedman/ChavoBart Digital Media
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