Adam H. Cooke
How Solar Panels Can Reduce Your Energy Costs I PremierImprovementsOne.com
Solar power is currently among the most cost-effective renewable energy alternatives, whether for homes or businesses. A solar lease, also known as a solar lease agreement, is a long-term contract between a buyer and a solar supplier. For homeowners looking to fill their energy needs without large monthly electric bill bills, yet who do not have the upfront financial capital to purchase a commercial system... solar leasing may be the answer. It provides an excellent financial opportunity to own your own solar power company at a low capital expense with the possibility of achieving substantial long-term savings. Solar leases are popular due to many factors, including the potential for long-term savings, attractive lease terms, and the option to lease versus buy.
The first major advantage of a lease over a purchase is the lower initial cost. With a lease, the buyer pays only for the energy that the system generates during the period of the contract. This means that the total cost of a solar energy system during the life of the lease will be lower than it would be if you were to purchase it. In addition, in most instances, the installation costs of a solar energy system are going to be less than the installation costs of a new system bought from a major retail electric provider.
Solar leases offer another big advantage to those looking to go solar: the option to finance the system. In most states, the lending institution that issues the lease can require that a certain amount of down payment to be made by the buyer, in order to qualify for the loan. This makes solar leasing an excellent opportunity for those with little or no credit history, and for buyers who are considering paying for their purchase in full rather than in monthly installments. In fact, those with good credit are often offered the chance to secure a better interest rate and terms by a reputable bank or lender by going through a leasing company that specializes in solar leasing.
Most solar leasing companies will also offer the opportunity to finance the purchase of panels through them. Many of these companies will buy the panels directly from the producers, taking care of the production process. This means that in many cases, when the buyer of one of these panels takes out a loan to pay for the system, it will not be the responsibility of the solar leasing company. In fact, the financing is done right at the solar leasing company, and the responsibility is passed on to the borrower.
When a solar panel's lease expires, the owner of the panels is not required to continue making payments. Some agreements allow for an early termination fee to apply, but the majority of agreements will allow for the lease to lapse after the specified amount of time has elapsed. During the specified time, the buyer of the solar panels has the option to buy them back from the solar company or to continue to pay the lender for the same number of years as the lease.
A few things need to be kept in mind if you plan on using solar power as an alternative source of renewable energy. The first thing that you need to do is make sure that you have access to an adequate transmission line in order to send the electricity you produce back into your home. It is important to note that many states are now beginning to require that you have this transmission infrastructure in place, so if your home does not have it, you may be required to invest in it as part of the deal. You also need to keep in mind that although the cost of purchasing the necessary equipment to produce your own renewable energy can be high, it should still be fairly cheap overall because it will be a one-time cost. Once the initial investment has been made, the costs tend to be much lower.
Another option available for those interested in buying residential solar panels and creating their own free, green energy are to look into leasing solar panels. Although there are a number of potential pitfalls associated with this financing option, such as having to start payment way too early if you default on your lease or having a very limited number of choices for providers, there are also a number of long-term savings that can be realized by using this method. For example, leasing is typically a much more affordable option when compared with purchasing. If you already have equipment that you no longer need, you may decide that you would rather take that money and use it to purchase the solar panels you have been considering purchasing. In addition, by making your payments on time and in full, you can often negotiate a much better deal than you would find by purchasing.
Whether you decide to purchase a new solar panel system or lease one, it is important to understand all of your options. Solar power is quickly becoming a very popular form of alternative energy, and with good reason. Although there are some potential disadvantages to using this form of renewable energy, there are also a lot of financial incentives that can help you to save money and get the results that you want. The most important thing is that you carefully consider all of your options and select the one that will offer you the best return on your investment.