to lease or to own
You are a consumer trading one utility for another
solar leases, solar ppa, solar pre-paid are liabilities
own your solar
You are an solar investor: electric, water, air conditioning, battery, etc
Select a Decision Criteria below:
- you are planning to stay in your property for 20 years.
- do not want an equity increase for future property sell or loan.
- just want to keep up with the "Joneses"
- solar ownership is easy as with approved credit you are able to go solar, get the savings, increase your equity, and be protected in some states like Arizona tax shelter until 2040
- have a tax liability that is greater than the write-off amount, then solar ownership is a great investment.
- have access to funds, 401k, heloc, or revenue to pay for the system.
- are a business and can realize tax benefits through treating the system as a depreciable asset.
- plan to sell your property within the next few years, no worries as the owned solar system would increase your equity since its part of “Real Property”.
- This is not an investment its a liability, you become a consumer with an additional reoccurring debt
- Low up front cost generally ranging from $0 to approximately 50% of the system’s originating price or reported value to treasury department.
- No offsets from rebates, tax credits or incentives.
- Requires no upfront payment on approved credit
- The system is real property under state law and you receive equity improvement and in some states like Arizona protection from property tax until 2040.
- Tax credits reduce your Federal income tax liability for the year in which the system was purchased or can be spread to 2020 if your tax liability is less than the credit amount.
- Repairs are the responsibility of the leasing company that owns the system but maintenance is still your responsibility.
- Most companies offer free online, smart phone, or tablet programs to track your system’s performance and report any issues to the leasing company.
- You own the system and are responsible for maintaining it. Solar PV systems generally require little or no maintenance as there are no moving parts. Solar panels carry a up to 30-year performance guarantee and solar inverters carry up to 25 year warranty.
- With solar panels made in America, you receive up to life-time monitoring.
- Terms are generally for 20 to 25 years.
- Purchased systems only take up to 7 to 9 years to pay for themselves based on peak usage, but there are so many incentives: for every $1 invested $4.20 is returned.
- You do not qualify for 1) tax credits, 2) depreciation, 3) incentives, 4) equity, 5) property tax protection and you are responsible as a consumer for state taxes $100 to $1200 a year.
You qualify for all applicable:
- Federal Investment Tax credits (consult your CPA)
- State tax credits
- Equity Increase for “Real Property”
- Savings general amount to $25 to $90 a month
- With $0-down and small down payment options of solar lease you will realize savings small savings on your electricity bill.
- Solar leases generally have an escalator each year of 2% to 4.5%
- Pay now, then pay more later when you buy out the lease
- Excellent returns that can range from 10% to more than 18%
- Free electricity up to 50 Years
- Real Property Equity Increase
- Inflation protected
- Very easy to sell your home with potential increased equity
- Low up front payment
- Some reduction in carbon footprint.
- No risk with respect to repairs
- You Are Helping The Planet.
- Significant reduction in carbon footprint.
- Qualify for all rebates, tax credits, tax protections from city and state.
- Attractive return on investment, especially if you borrow to finance the system. Generally, the savings generated will be much larger than the cost of the money borrowed.
- Significant increase in property value. As a general rule, every $1 saved in electricity costs / year translates to an increase of $20 in the property’s equity as its “Real Property”.
- Fewer issues to address when selling the property.
- Add as many saving products as needed even if your family grows or if you sell your home or business to a larger user of electricity.
- You win 8 ways and receive all the benefits of ownership of assets and not a liability contract.
- You receive a 15 year install warranty.
- You can increase your savings by upgrading to a solar thermal air conditioner allowing for the thermal panel on your roof.
That was one “Hail” of a Solar Storm
Many people ask about hail and solar panels. In 39 years in business, we have never had to replace a solar panel due to hail. The simple reason is that AZ doesn’t receive the golf ball & soft ball size hail that is prevalent to the Midwest. Even when it does hail large enough to cause damage to the metal of cars, it doesn’t break the windshield. Solar panels, like windshields, are tempered. However, if your solar ever was to succumb to a hail storm, it would be covered under your Force Majeure clause in your homeowner’s policy just like your roof and A/C. Your homeowner's policy would only be $10 higher on average and a lot less than a solar lease charging backend interest to cover their third party investors.
- Potential issues with most leases if you were to sell the property
- You do not own your roof so make sure you call for permission before you do anything.
- Lease Contracted Warranty is generally only good for 85% of the power production up to 10 years, not the 20 usually stated in advertising.
- Pre-paid Lease under a residential PPA still means you do not own the equipment. You are loaning the lease company money and no longer earning 3% on CD’s or Bonds and not a write off.
- You lose all the property value increase usually $21,000 to $41,000 on average because you do not own the equipment even on the pre-paid lease. It must be owned as “Real Property”.
- You cannot add a solar thermal air conditioner to increase your savings because you do not own your roof allowing the thermal collector to be added.
- You generally receive a 2 year install warranty.
- MVA is usually the Lease company stated value to the treasury for $54,000.00 which you are responsible for paying at the end of the lease or pre-paid lease as stated in the contract.
- Arizona Department of Revenue Considers Taxability of Leased Solar Systems because the customer does not own it. Arizona Department of Revenue issued a memo which strongly suggests that leased residential and commercial solar systems may no longer be exempt from property tax assessment. The current exemption applies to those systems which produce electricity for onsite consumption, and the Department has raised the question of whether systems which are owned by a third-party fall under the necessary statutory definition for the state’s property tax exemption. The Department’s logic in this case is somewhat tortured, and there have already been multiple meetings and exchanges between solar industry representatives and Department staff on this matter. The Department’s memo is not a final ruling, and final guidance to county assessors and others is expected relatively soon.
- Larger cash outlay although most of it is just trading your electric bill and now it’s a write off.
- Not Many since there are no moving parts.
- You have to use your hose once in awhile to spray the panels off, especially after a big dust storm with no rain. Or, you can use Sparkle Clean Solar System a nano-dirt repellent.
let's be a solar hipster, together
An American dream for real change, by going green, to help make the world a better place starting with you and your community. Save money save the planet, and help your community thrive.