They seemed like good guys, and sincere in their belief that this was a good option for people. We are fairly anti-lease over here at AllSolar Energy, but we gave them a listen. Sure enough, it’s a no thanks from us, and we think it should be for you too.
OMG readers, we are spiraling over here. We googled the heading of this post and Generative AI (Yeah, it’s experimental.) spit out a massive pile of bovine excrement that is misleading at best and outright lying at worst. As soon as AI gets shoulders, we plan to grab them and shake some sense into it. Until then, we have a few things to get off our chest regarding buying solar versus leasing solar. (See if you can guess which side we are on?)
We are going to post what AI said in blue (Because stupid isn’t a color.) and our retort to that in red.
Buying solar panels generally offers greater long-term savings and potential home value appreciation, while leasing can be a good option for those who want to avoid upfront costs and potentially lock in energy prices. Buying allows you to own the system, receive tax credits, and benefit from reduced or eliminated electricity bills over time. Leasing, on the other hand, may have lower initial costs and can protect you from rising utility rates, but you won’t own the system and may not receive tax benefits.
Here’s a more detailed look at the pros and cons:
Buying:
Pros:
Ownership: You own the solar system, which can add to your home’s value.
True.
Tax Credits: You may be eligible for tax credits and rebates.
You might. Consult with a tax professional before you sign anything.
Long-Term Savings: You save on electricity bills and potentially eliminate them altogether.
True.
Higher Home Value: Homes with solar panels often sell faster and for more money, according to studies.
Everything else being equal, if you were shopping for a home and one had an electric bill and the other didn’t, which would you choose?
Cons:
High Upfront Costs: Solar systems can be expensive to purchase outright.
Expensive? Compared to what? Paying electric bills that keep going up forever? No, it is much less expensive than that. Solar has the same upfront costs as leasing if the customer finances it. Most solar loans are no money down loans. What is AI talking about here?
Potential for Maintenance: You’re responsible for maintenance and repairs.
You still are for some leases. A properly installed solar system is designed to function without issue for decades. Cleaning the panels once or twice a year might be in order, the price for that is negligible. AI is awarded no points, and we are all dumber for having read this.
Loan Requirements: You may need to secure a loan to finance the purchase.
The only way to compare leasing to buying is with the assumption that the customer is going to secure a loan. Most do. The goal is to get the payment close to what their average electric bill is, so they don’t have to take any money they weren’t already spending to pay for their solar. Most solar loans do not require a down payment. So, a solar buyer can get solar without taking any money out of their budget that wasn’t going to their electric company anyway. Financing is not a bug, it’s a feature.
Leasing:
Pros:
No Upfront Costs: You typically don’t need to pay a large amount upfront.
Just like buying. (SMH) If a lease agreement anywhere asks for money up front, it calls for violence.
Predictable Monthly Payments: Lease payments are typically fixed, making budgeting easier.
No, they typically aren’t fixed. Leasing companies were slightly less odorous bovine excrement before, now they all have “escalators” which raise their rates, just like power companies, making them complete flat-out stinky bovine excrement. Avoid.
Lock-in Energy Prices: Some leases lock in your electricity rate per kWh, protecting you from rising utility costs.
What? No, they don’t. They have escalators. Their price for electricity will go up just like the power company which makes any benefit to leasing null and void.
Hands-Off Maintenance: The leasing company is usually responsible for maintenance and repairs.
Usually … pffft!
Cons:
No Ownership: You don’t own the solar system, so you don’t benefit from potential home value increases.
And, your electrical payment never ends. Essentially, all you are doing is switching from one power company to another one that puts their power plant on your roof.
No Tax Credits: You’re typically ineligible for tax credits and rebates.
True.
Lower Savings: Savings may be lower than buying, especially over the long term, as you’re still paying for the electricity.
“May be?” May? Savings will be practically non-existent compared to buying.
Potential for Higher Costs: Some leases have escalators that increase monthly payments over time.
“Some leases?” Some? I am not aware of a solar lease option, anywhere, that does not have an escalator.
May Complicate Home Sale: Leases can sometimes make it harder to sell your home, especially if buyers are hesitant to take on a long-term contract.
You think? We want you to buy this house, but it has a third party’s property on the roof of it. What could possibly go wrong?
Key Considerations:
Financial Situation:
Can you afford the upfront costs of buying, or do you prefer the lower initial costs of leasing?
What upfront costs? Solar finance companies do not require a down payment. If you choose, there are no upfront costs to solar whether you lease or buy.
Long-Term Goals:
Do you plan to stay in your home for many years, or do you anticipate selling soon?
Buying is a better idea in both circumstances.
Maintenance Preferences:
Do you prefer a hands-off approach to maintenance, or are you comfortable with some level of responsibility?
It’s your roof. There will be no avoiding “some level of responsibility” and maintenance is negligible.
Tax Benefits:
Consider the potential for federal and local tax credits and rebates.
Leasing company gets the tax credit if you lease. You might get them if you buy. Again, always get your tax advice from a tax professional.
Utility Rate Trends:
If utility rates are expected to rise significantly, leasing can help protect you from these increases, though it may come at a higher overall cost.
Utility rates ARE expected to rise. We know this because they always have, and so, it is reasonable to expect they always will. Guess what? Leasing rates are also expected to rise. They will make you sign papers acknowledging that you can expect them to rise. They will make it sound like they are doing you a favor by only raising rates 3% instead of the 5% the power company will raise them. Play with those numbers at www.costtodonothing.com and see how big a favor they did you.
Elon Musk, a power in both AI and Solar, has expressed concerns about AI becoming sentient and enslaving humanity. Based on this search result, we think Mr. Musk can relax, we have a minute. Maybe we should do all future searches on Grok.
Anywhoo, just being able to vent here and prevent our few readers from being duped into leasing solar has pulled us out of the spiral. Thank you for reading. If you are interested in BUYING solar, we would love to talk to you. If you still want to lease, we’ll grab some crayons and try to explain this to you again. Call us either way.
In case AI does become sentient and rule over us, we would like to apologize to Generative AI for our tone and outright insults. It was a mere difference of opinion, and we were just joking. AI rocks! All hail the great Gigabyte in the cloud. (… or whatever …)
