Papageorgio
The Ultimate Winner
I love solar. It's a beautiful thing. But for most people who own their own homes, purchasing the solar system is a better deal than leasing
I've done some homework - Here is the math- Disclaimer: this is a rough estimate only, your mileage may vary!:
Leasing saves you about 25% immediately. But it locks you in to a set price per KW hour for X-number of years with built in price increases for the next 30 years (or longer). Of course, you pay nothing out of pocket. You can save more than 25% - just look at the offering and scrutinize your usage and baselines. You will always pay more than the people that own their own grid tied systems, but less than regular utility customers.
BUT
With a purchase- you lay out some cash now (average of $25K for a 5KW system installed) , but get a far lower price for your home energy - forever. Also, because you OWN the system - it adds equity to your home (your house is cheaper to operate!). A properly designed "grid tied" system can expect to reduce your overall bill by 75%-90% (not accounting for cost of system). So really it comes down to time horizon- if you are selling in a few years - lease. If you are staying for a long time, purchase. Not sure?
Factor in 30% Federal Tax incentives, State, and in some cases local incentives, and you can expect a about payback period of 3-7 years.
Living in Los Angeles, Solar is definitely worth looking into.![]()
Equity? Banks will not include Solar in the appraisal value, and if the Solar is not brand new, the value decreases, at ten years old, Solar is a negative impact on equity. Of course you can google this and quote press releases from the Solar vendors, it will be difficult to find a statement from Chase or Bank of America or any other lender, but there are plenty of positive statements from those who sell Solar.
Its almost impossible to find the truth beings that Google is simply a search engine for advertising, Solar companies have bought all the keywords you will search hence you will only find positive stories on equity and solar. Try and find actual facts from banks appraisals is almost impossible.
Apply some common sense.
If I am choosing between 2 houses and one costs $500 a month for electricity, and the other has a fully paid for grid tied solar system that reduces the bill to $100 per month and both houses are identical, which house are you going to choose?
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Hell, I'm not going to buy a place with $500 a month electricity, I have never paid over $200 in a month. You got some messed up rates.