Solar panels: Should you buy or rent?
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If you want to save money on your energy bills or work towards carbon neutrality, solar power might be for you. Solar panels absorb sunlight and convert it into renewable energies through photovoltaics.
You can use this energy for power supply, HVAC unit and much more. Best of all, the cost of installing solar panels goes down. If you choose a solar service for private households, you have the choice of renting or buying your modules directly.
This guide will help you understand the pros and cons of each option. In return, you can decide whether renting or buying suits the best. Let’s start with whether your home is ideal for solar panels.
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Is my house suitable for solar energy?
Check with a solar provider to make sure that your roof has enough visibility and the right slope for installation. Do you have trees near your home that provide a lot of shade? If your roof isn’t exposed to a lot of direct sunlight, it may not be suitable for solar panels. Regardless, a qualified provider can confirm the eligibility of your home.
If your home is eligible for solar panels, checkand check with your local utility to see if they are incentivizing solar panels in residential areas. Now let’s consider whether renting or buying suits you.
Advantages of renting solar panels
Instead of paying the upfront costs associated with purchasing solar panels, you make monthly lease payments when you rent. In many cases, the company renting the panels to you is also responsible for the maintenance. However, it is important to check in advance that all maintenance and repairs are covered.
You get energy savings with solar panels. How much you save, however, depends on the electricity consumption of your house, the electricity tariff of your supplier and the size of your solar system.
Things to Consider When Renting
While you don’t have to worry about the upfront cost, you also don’t get the tax benefits of installing solar panels. The company that rents you the solar modules will take over the loan.
Since you are under a rental agreement, you must also meet the terms of that agreement. This also applies if you decide to move while you are still under contract. The runtime details may vary depending on the solar provider. So check with potential installers about their conditions before making your decision.
Benefits of Buying Solar Panels
Once you’ve installed the solar panels, you will receive tax credits for installing the devices.
Another advantage are certificates for renewable energies. Electricity companies have to get some of their electricity from renewable energy sources. Hence, these certificates allow you to make money by selling the renewable energy that the solar panels produce. Over time, the payback period for your solar system will decrease.
Things to consider when buying
When looking at solar energy, the upfront cost can be thought provoking. That’s not surprising when you consider that a home solar system can cost anywhere from $ 15,000 to $ 25,000.
However, if you can pay the upfront cost then you are eligibleof 22% of the system costs. With the US recently rejoining the Paris Climate Agreement, the tax credit amount could change in the future.
If your system costs $ 19,000, you will receive a tax credit of $ 4,180. While it doesn’t make up for the initial cost, it does provide some relief as long as you pay at least that much in federal income tax. In addition, with lower energy costs, you will see the cost savings both now and in the future.
Another thing to consider is how a solar system can affect your homeowner’s insurance, as these policies come with coverage limits. If the value of your solar system exceeds your coverage, you will need to update coverage.
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Solar panels can offer significant energy savings. To determine if this is right for you, the first thing to do is to speak to a few solar providers in your area. The companies that sell and install solar panels can inspect your home to make sure it is suitable for the equipment.
Along with the angle of your roof and the direction it is facing (usually south facing is best), the professionals will also examine the age of your roof. Ideally, you need a roof that is at least 500 square feet. You will also take into account his age. Since panels can have a lifespan of more than 25 years, a roof in optimal condition makes it easier to install a solar system.
After talking to solar energy providers, you can determine whether solar energy is a sensible investment for you – either to rent or to buy.