Advantages and disadvantages of renting solar panels

Renting solar panels has become a common way to finance renewable energy projects. This method allows individuals or businesses to rent solar panels at low cost and then pay off the loan over time.

Solar energy is becoming more affordable every year. In fact, solar panel rentals are now a viable option for homeowners who want to install solar panels without having to purchase them outright.

However, renting solar panels has some drawbacks. For example, you might not get the same amount of electricity from your system as someone who has their own solar panel.

Also, you won’t be able to sell the extra electricity you produce during periods of high demand.

Let’s take a closer look at the pros and cons of renting solar panels.

What is a solar panel?

A solar panel is an electrical device that directly converts sunlight into electricity. It is made up of photovoltaic cells (also called solar cells) that convert light energy into direct current.

The output voltage can vary between 12V and 24V depending on the number of photovoltaic cells used in each panel.

There are two main types of solar panels: monocrystalline silicon and polycrystalline silicon.

Monocrystalline silicon panels tend to be more expensive than polycrystalline silicon panels because they are made with higher quality materials. However, they also have better efficiency ratings.

The most popular type of solar panel today is the polycrystalline silicon panel.

These panels use less material than monocrystalline panels, so they are cheaper to manufacture. They also have lower efficiencies than monocrystalline silicon panels.

Solar panels are placed on rooftops or around properties to power them with the energy they have collected during the day (provided there is sunlight).

You can save an impressive amount on your energy bills by using solar panels, but the upfront cost is often what makes people so hesitant to get them. This is where solar panel rentals come in.

Read more: Amorphous Vs Monocrystalline Vs Polycrystalline Solar Panels

What is solar panel rental?

Solar panel rental consists of offering customers the option of renting solar panels instead of buying them directly.

As long as you pay off the lease on time, you don’t have to worry about additional payments.

With this type of financing, you only pay for the energy produced by your solar panels. If you decide to stop paying, you simply return the equipment to the company.

This allows you to use the energy created from the solar panels without having to worry about maintenance costs.

If you find that they do not satisfy your wishes enough, you can simply send them back.

The pros and cons of renting solar panels

Now that we know what solar panels and solar panel rentals are, we can look at the pros and cons of such a system.

We have a list of pros and cons here, which will hopefully help you decide if renting solar panels is the right thing for you.

Advantages of renting solar panels

There are several reasons why people choose to rent solar panels rather than buying them outright. Some of them include:

Lower initial investment

When you rent solar panels, you don’t need a big down payment.

This ensures there is no big first payment to an energy company. Solar panels can cost at least $30,000, although some are cheaper between $1,900 and $13,600.

Either way, the average cost of a solar panel is $7,750. You’ll probably need around 10-20 solar panels to cover the costs of your household energy bill, which means you’ll be looking at an investment of between $70,000 and $150,000 to purchase your solar panels.

This is an incredibly high upfront cost for solar panels, and one that many households cannot afford to manufacture.

The price for solar panel rentals is often $0 for start-up costs. When looking for an economical option, renting is the way to go.

Read more: Check out our Tesla Solar Roof review here

No maintenance costs

One of the biggest issues with owning solar panels is their maintenance. A purchased solar panel may have a number of warranties, such as a performance warranty, a manufacturer’s warranty, and a workmanship warranty.

These will help you to some extent, but once the warranties expire, you’re on your own.

However, if you rent solar panels, you won’t have to worry about maintenance costs. Your panels will last much longer and you won’t have to replace them every year.

Some leasing companies offer free maintenance, installation, warranties, and monitoring to make the cost even easier for you.

When you own a solar panel, you can often spend up to $1,225 on repairs alone. As long as you choose the right solar panel rental company, you may not have to worry about this extra cost.

Flexible repayment terms

With solar panel rentals, you can work out a flexible schedule that works best for you.

Most leasing companies allow you to repay over a period of time, or you can opt for monthly payments instead. Additionally, most leasing companies also offer a low interest rate.

If you want to get a loan to finance your purchase, you may have to pay higher interest rates.

However, when you rent solar panels, the money you save on interest means you have more money left over to invest elsewhere.

After your leasing contract is over, most companies also offer you the option of purchasing your solar panels at a discounted rate.

So you can enjoy lower costs for longer before owning the solar panels yourself. If you don’t want to buy them, you can either start a new lease or fire them.

How much can you save each month?

You can install solar power on your home for $0 down payment

Disadvantages of renting solar panels

Although renting solar panels has its advantages, it also has some disadvantages. Here’s what you need to know:

Limited warranty

Although most leasing companies offer a limited warranty, this is not always enough to protect your investment.

For example, if your panels break during normal use, you might be out of luck. It’s important to check the fine print of any rental agreement to find out how much protection it offers.

We mentioned earlier that some good leasing companies give you free maintenance and warranties. However, these are not all companies.

If you choose the wrong one, you might end up paying those extra fees and spending more than you expected on your rented solar panels.

Higher overall cost

With the rental of solar panels, you generally have to commit to a minimum period. After the term ends, you must continue to pay the same amount each month until the end of the contract.

Much like renting a house rather than buying one, your initial costs will be cheaper, but the longer you rent, the more money you will spend.

Soon you will have spent more on rented solar panels than it would cost to buy new ones, without the pride of owning your own solar panels.

This is why renting solar panels can sometimes be more expensive than buying your own panels.

You are committing to producing a certain amount of energy, so you need to factor that into your decision.

Advantages and disadvantages of solar panel rental 2

No investment tax credit (ITC) or refund

The federal government offers an ITC tax credit for those who purchase their solar panels. The ITC helps offset the cost of purchasing solar panels by reducing your taxes.

This facilitates the purchase of solar panels. The federal government offers a 30% tax credit to people who have installed energy-efficient products in their homes, such as solar panels.

However, if you rent solar panels, there is no CII. This means that you will not receive a tax deduction for the initial cost of installing solar panels.

How much can you save each month?

You can install solar power on your home for $0 down payment

Summary

Renting solar panels is a great way to lower your monthly payments while still having access to the benefits of renewable energy.

But just because you’re renting doesn’t mean you can’t benefit from other government incentives.

Make sure you understand the pros and cons of solar panel rental before you make this big decision.

If you decide to go with leasing, make sure you get a company that offers good customer service and a long warranty by asking them the right questions.

Also look for a company that offers financial assistance programs to help reduce the overall cost of installation.