Is a SunPower Lease Right for Me?
Alex "Solar Girl" Steele
For a long time, many homeowners believed that if they didn’t have cash available, or the tax appetite and credit history to qualify for a loan, that solar would be unattainable for them. Well, we’re here to share the exciting news that solar can become a reality for most anyone, even folks on a fixed income. Solar Wolf Energy has teamed up with SunPower, a solar provider who provides the highest quality solar panels available, to offer opportunities for anyone who wants to go solar! Today, let’s dive into some information about SunPower leases.
Much like leasing an apartment or a car, leasing your solar energy system can be a convenient way to harness the power of the sun without taking on the responsibility of ownership. The program works by allowing the property owner to pay for the power they use, without having to worry about any of the upkeep or liability of owning a system outright. Typically, solar leases are long-term agreements that last for 20-25 years, and there may be an option to buy out the system at the end of the lease term. You may also be able to renew your lease if you’d like an additional term, or have the installer remove the panels after the term ends. If you decide to sell your home while the lease term is still active, you have the option to purchase the system outright and sell it with the house or you can transfer the lease to the new qualified homeowner.
One of the greatest benefits of a solar lease is that they typically cost nothing upfront, so you can see immediate savings on your electric bill as soon as your system is activated. You can also enjoy a fixed monthly lease payment, so the anxiety of skyrocketing utility rates during high-demand summer or winter months will become a thing of the past. Some lease agreements have the option to select an annual payment escalator, which annually increases monthly lease payments by a small percentage, to provide lower initial payments. All SunPower leases include a performance guarantee, which assures that the lessor will compensate the lessee if the system fails to produce the amount of power that was agreed upon in the Lease Agreement.
There are some aspects of a lease that may not be best for every homeowner, so we want to cover those as well. Leasing typically does not enable customers to take advantage of the federal investment tax credit directly, because they do not own the system., However, the lessee can benefit from the tax credit indirectly, as it can offset the lease payment, contributing to a lower monthly payment. Lease customers can also qualify for some statewide tax benefits. Solar lease customers may miss out on municipal assets such as net metering. so while there are less financial returns to utilize with a solar lease, there is also much less hassle, and no upfront cost. Whether a lease or purchase is better for your household depends on a number of factors, and you can work with a Solar Wolf Energy sales professional to help determine which option is best for you!
The Wolf Pack is excited to be working with SunPower to offer secure, convenient lease options to property owners throughout our service territory. If you’re interested in going solar, but you don’t know if you’re prepared to commit to a purchase or loan, give Solar Wolf a call! We can help you navigate all of your options and guide you toward a solution that leaves you with a greatly reduced or eliminated electricity bill, and a low, fixed-rate or escalated-rate solar payment. We look forward to hearing from you!