Here are some key benefits of choosing solar financing.
Tax incentives – With financing, you own the solar system so you can claim federal tax credits, usually 26% of the cost. There are also state and local incentives. With solar leases, the owner claims these credits.
Building equity – An owned solar system adds value to your home. This can make it easier to sell. A leased system does not add home value.
Control – When you own the system, you decide things like panel placement and tree removal for production. With a lease, you need the company’s permission.
Cost savings – While financing has higher upfront costs than leasing, owning the system provides greater lifetime savings. You keep the energy savings after paying off the loan.
Customization – Purchased systems can be expanded more easily. It is difficult to modify leased systems.
Selling your home – A purchased solar system transfers to the new owner. Leased systems often require paying off the lease when you sell.
End of contract – At the end of a solar loan, your panels keep producing free electricity. A leased system may need to be removed or purchased once the lease ends.