Solar Lease

$0 Down Solar Lease

The “Solar Lease”, ” Solar Rent”, or “$0 down lease” are commonly used to describe the Solar Lease. The Solar Lease is one of the most popular ways of going solar; it is loved by most of the home owners that signed up for it. The solar lease was one of the first forms of the $0 down solar solutions. It’s a solar lease agreement between the home owner and the solar financing company where the home owner agrees to pay a fixed monthly solar lease for the equipment. The monthly solar lease can increase annually or stays fixed for the duration of the solar lease agreement depending on the .
The solar lease was launched early 2007 as I recall. The solar lease started slow but by the end of 2011 was selling like crazy. Home owners loved the fact that it is a $0 down solar lease and that the solar lease is transferable to the new home owners if they decide to go solar. The solar lease also came with system warranty, monitoring, and insurance; which was bumper to bumper coverage. The solar lease has been the product of choice for solar customers for a long period of time and still today the solar lease is very popular. Some consultants compare leasing a car to the solar lease but it’s totally different. The solar lease comes with full warranty and insurance but the you will have to pay for insurance with a car lease. The solar lease is a $0 down lease but the car lease usually entails registration fees, or these fees are being bundled in the lease, and increase your payment.
So, how do companies make money? There are several divisions: First, the financing company makes money overtime by collecting the tax credit from the cost of the system, and collecting your solar lease payment for the whole agreement period; or by selling the note to another bank/financing company. The solar installer sells the solar installation to the solar financing company, making profit, and in most cases making profit from maintenance and repair as well.
Then, there was some confusion! Home owners started selling their houses with the solar lease. Realtors weren’t experienced enough with the process of selling houses with a solar lease. It entailed more work in the selling process that they didn’t know how to do. By this happening, some house escrows with a solar lease turned into a nightmare. Which was a result from the wrong expectations set by the solar lease sales representatives. Customers didn’t read their solar lease agreement and realtors weren’t familiar with the solar lease. It became a competitive edge for a few realtors who loved the idea and became very familiar with the process and how to present it to the home buyer.
So here is how SunGuide would explain the solar lease: The solar lease is getting a solar installation with $0 down but paying a set monthly fee that increases annually or stays the same; depending on the deal you get from the solar company you choose. The fee is in return for the estimated production of the solar system to be installed. So it would be like buying your energy from the solar panels through a monthly solar lease.
What are the things that might make the the solar lease less attractive? The word solar lease is not that attractive to home owners. During the solar lease the home owner sometimes doesn’t have the option to own the solar system; but instead has the option of prepaying the solar lease. The home owner doesn’t get the tax credits because the financing company is considered the actual owner.
What makes the solar lease a good fit for you?
If you don’t qualify for the solar tax credit
If you live on a fixed income or on a fixed budget
If you don’t want to increase your debt to income ratio by taking a solar loan
If you don’t have the cash to pay for your own solar system
If you are planning to sell your house between 3-10 years
If you are with a utility company that doesn’t allow the PPA and only allows the solar lease
If you like the fact that the solar installation comes with a bumper to bumper coverage and    you are not responsible for recycling the solar system in the future
Is the solar lease a good or a bad product? Let’s put it this way: the lease was a very good way to introduce $0 down solar to the market. Now as the market developed and there are many options that are available that benefit different people, the solar lease is a good product. But is it the best for you? Scroll down and schedule your free solar consultation to find out more about the solar lease!