What are the differences between Leasing and Purchasing a Solar Panels?
Homeowners in New York and New Jersey can choose to either lease or purchase their solar system. This brief article aims to educate homeowners on the main differences between the two programs.
What out of pocket expenses should I expect?
Most leasing programs are no money out of pocket with the intention of providing an immediate savings for homeowners that switch to solar. On the contrary, purchasing your solar system would require out of pocket expenses. However, solar installation companies like Integrity Solar Solutions partner with third party Member FDIC Lenders. This allows solar installers to offer $0 down, no money out of pocket programs to their customers with the intention of providing them an immediate savings when they switch to solar.
What incentives do I qualify for?
There is a 26% Federal Tax Credit for homeowners who switch to solar in 2022. This credit can only be claiming by the owner of the solar system. Homeowners who choose to lease their solar system technically do not own their solar system, therefore do NOT qualify for the 26% Federal Tax Credit. Homeowners that purchase their system will qualify for this tax credit, regardless of a cash outlay or a $0 down finance.
Who Maintains, Monitors, and Insures my Solar System?
If you lease a solar system, the leasing company/installer that installed your solar system is responsible to maintain, monitor, and fully insure your solar system. If you choose to purchase your system, the solar installation company that installed your solar company is responsible to maintain and monitor your solar system. Insurance for homeowners that purchase and own their solar system will be covered underneath their homeowner’s insurance policy. Equipment warranties for material defects through the product manufacturers are the exact same regardless of which program you choose, leasing or purchasing.
For a quote, or help with any further questions regarding leasing vs purchasing your solar system please call us at 845-584-3100 x1 and ask for John.