Should you buy or lease a solar solution?
The only distinction between buying and leasing a system is in terms of ownership. In a purchase model, you own the solution; whereas under a PPA (Power Purchase Agreement), a third party or the financier owns the solution.
Buying or leasing a solar solution are both decent options if you want to save on your energy costs, help the environment, and become energy independent. It’s essential to consider a Solar Solution Provider with sound recommendation and project base, and your particular financial goals.
Purchasing a solar solution
Outright purchasing a solar solution gives you more in savings over the life of the asset. And can help in reducing your electricity bills by up to 30 percent. Most systems pay for themselves in a period of three to five years.
Cash purchase is beneficial if you want to maximize financial savings from your solar solution.
Leasing a solar solution
If you want to finance your solar solution, you can enter a PPA (Power Purchase Agreement) where a financier finances the installation and you pay a monthly payment at an agreed upon rate. Such agreements are spread over a period of 20 years with a full 20-year performance guarantee, remote monitoring and system warranty.
The benefits of a leasing agreement entail zero upfront cost, and immediate financial savings.