As you explore the questions and answers below one thing to note is that ownership isn’t a forfeiture of warranties and protections. Many people fear that by owning the system that they are solely responsible for it’s reliable operation and in most cases it’s quite the opposite. Any reputable solar company such as Radiant Solar whether you’ve leased the system or own it, will stand strongly behind it for 10 years, 20 years or even longer.
Back to the debate of which solution is best for your circumstances.
One thing we can safely assume is that we’ll each have the need for power/electricity for the foreseeable future. You like me have probably been paying utility bills for decades and with nothing to indicate that need is going anywhere anytime soon we may want to take a deeper at how secure our pricing is long term. When we look at going solar, it’s not unwise to look years down the road, even decades or more.
Let’s go through a few quick questions that may shine some light on the financial vehicle best suited for you…
1.) Do we have taxable income and can take advantage of the tax credits and rebates?
Tax credits and most rebates are typically only a benefit when one purchases their system. For those that qualify and at the time this article is being written the current tax policies allow one to capture 30% of the cost of the system in the form of a Federal Tax Credit. This of course reduces the net cost of the system and reduces the payback period quite considerably. Additionally, most loans give you a period of time initially (12-18 months) where you can capture the tax credit and pay down your loan balance, significantly driving down your monthly payment. This effectively puts your payment below or within close proximity to a lease payment but of course includes the benefits of ownership (It’s part of your home which has value and eventually will be paid off) which make it a very attractive option.
*Check with your CPA or financial professional for clarification on how it will effect you.
- Considering our home and it’s orientation to the path of the sun over it, will the energy produced by the system justify purchase (aka how efficient is the system)?
*We have solar professionals throughout southern Nevada including Henderson and Las Vegas that can quickly and without obligation run your home through our software and let you know what to expect from a production standpoint.
When you lease a system you’re essentially agreeing to pay a predetermined amount for a predetermined amount of power. Whether the solar company has to install 10 panels on your roof or 20 to produce that power, you’re typically not exposed to those costs and remain locked into a lower cost per kWh (kilowatt hour) than offered by your utility company. This format allows one that doesn’t have ideal conditions (look up “azimuth”) to capture the economic benefits of solar even with a big system without big investment. And leasing like most purchases is done with no money out of pocket so the transition very simple.
An additional question one may ask is how long they intend to live in the property?
Leasing and owning have different benefits and how long we live in the property effects which may be most beneficial. With many able to capture tax credits and benefit from what many studies are showing can be a sizable impact on home value, ownership is the choice even in the short term. If you’re on a fixed income, unable to capture the tax benefits and plan to move within a few years the responsibility of ownership may not be the best choice.
Going solar in southern Nevada can be a wonderful transition with many incredible benefits. Many would argue when compared to the alternative (continuing to buy power from a grid with next to no control) the above options are a “Better and Best” scenario. Like any decision of this magnitude you’ll want to get educated.
We have the most educated solar professionals in Las Vegas and Henderson standing by to help you understand your options. From there talk to your financial professional. Do your homework, research your options. When you’ve decided going solar makes the most sense and we know how to get the most out of it, Radiant Solar would embrace the opportunity to serve you.
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