5 Things You Have to Know About Solar Leases

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July 7, 2015 | By RGR Marketing Blog

When Financing Solar Is the Barrier to Entry

Over the past decade, the market for solar energy has grown by leaps and bounds. Consumers are going solar in record numbers, for a variety of reasons. Some of them are adopting solar power as a way to help stem the tide of climate change, a looming specter growing more ominous by the second. Others are simply eager to save money with solar, regardless of what the scientists have to say.

For years, cost was the primary hurdle standing between the average solar customer and the dream of clean, green solar energy. But now, solar leasing has lowered the barrier for entry.

Yes, Your Customers Can Go Solar With Zero Down

Through solar leasing programs, creditworthy customers can take advantage of the sun’s renewable energy with as little as zero money down. But while some industry giants are touting solar leases as “free solar”” the truth is a bit more complex. There’s no denying that solar leases and power purchase agreements reduce the up-front financial burden associated with adopting solar energy, but what are consumers giving up in the process?

Solar Leasing Is Taking Over

Solar leasing has become a very popular entry point into the world of solar energy. According to the Solar Energy Industries Association, third-party financing programs account for between fifty and ninety percent of solar installations in some states, and nearly 70% of the overall solar market in the United States. SolarCity, the solar leasing company chaired by visionary entrepreneur Elon Musk, likes to boast that it installs one out of every three solar systems in the U.S.

The Lessor Gets the Tax Credit

As you know, solar leases allow customers to shift the financial outlay associated with going solar from the initial installation phase and spread it out over years. The customer pays to lease the panels from the company that owns them, and is able to take advantage of the energy they generate.

You’re probably also aware that the solar lessor, as the owner of the solar array, is allowed to take advantage of state and federal tax incentives and rebates for solar, which help boost revenues and enhance the viability of the solar leasing business model.

Solar Leases May Require Escalation Charges

Did you know that solar leasing companies also levy contracted escalation charges against their customers? Under SolarCity’s zero-down programs, customers can expect their lease payments to increase by 2.9% per year.

Customers who are able to make down payments can sidestep the escalation charges.

Solar Leases Cost More Than Buying

Solar energy offers savings to consumers of all stripes, but the deal is sweetest for those potential solar customers who can afford to purchase their solar systems outright. Still, even for customers who take for the zero-down route, solar leases offer predictable future costs in a world where the price of energy is uncertain, at best.

Educate Your Customers

As a solar installer, it’s in your best interest to make sure your customers understand their options, and how much their choices will cost in the long run. Solar leasing can be a very attractive option, but purchasing solar panels may be a better choice when the goal is to maximize long-term savings.

[Photo Via: trt.net]

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When Financing Solar Is the Barrier to Entry

Yes, Your Customers Can Go Solar With Zero Down

Solar Leasing Is Taking Over

The Lessor Gets the Tax Credit

Solar Leases May Require Escalation Charges

Solar Leases Cost More Than Buying

Educate Your Customers

Start making more
money today!

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Contact Us

When Financing Solar Is the Barrier to Entry

Yes, Your Customers Can Go Solar With Zero Down

Solar Leasing Is Taking Over

The Lessor Gets the Tax Credit

Solar Leases May Require Escalation Charges

Solar Leases Cost More Than Buying

Educate Your Customers

Start making more money today!

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