Solar Leasing is Kind of Like Eating Fast Food
Leasing solar is kind of like eating fast food. Fast food will solve a short term problem, your hunger pangs, but over the long haul could be bad for your health. When it comes to investing in a solar power system, the up front costs are the biggest challenge. Solar Leasing will allow you “go solar” with no money down and a “low” monthly payment. As enticing as this it is, over time, it will be detrimental to your financial health.
If you decide to go with Solar Leasing, it’s very important to read the fine print. What starts out as being a “low” monthly payment often increases 3.9 percent each year. Over a 15-year lease, that adds up. While you can stop eating fast food at any time, you cannot easily break a lease agreement. If you wanted to sell your house, for example, the potential homeowner would need to have the same high credit score you do in order to assume the lease. If not, you’ll be paying up the wazoo to the leasing company.
There are great many reasons not to do solar leasing. This is just the tip of the iceberg. It’s incredibly profitable for the leasing companies, but not as good of a deal for you. While you save on 10 to 15 percent on your utility bill, the solar leasing companies are taking over the Federal and State solar incentives that would normally go to you, had you decided to purchase it.
We don’t want to get caught up in a no-money down scheme, do we? Doesn’t it make you think of the housing market crash? Come to think about it, it might better to sit back for a bit, maybe even eat some fast food, and think about what’s really best for us.