Guide To Solar Leasing in Florida: Is It the Right Choice for You?

Solar energy is a rapidly growing form of renewable energy in the US. More and more homeowners are considering going solar to reduce their carbon footprint and save money through energy independence. Homeowners in the Sunshine State of Florida are increasingly showing interest in going solar but often find the upfront costs of purchasing and installing their solar panels too high.

This is where solar leasing comes in as a viable option for Floridians to go solar without breaking the bank. Let's discuss everything you need to know about Solar Leasing in Florida and if you should consider it!

Solar leasing is an arrangement where a solar company installs and maintains solar panels on your property. In return, you pay a fixed monthly fee for the electricity generated by the panels. The cost of this lease payment is often lower than your current electricity bill, providing you with immediate savings on your energy costs.

This solar lease arrangement typically lasts for 20-25 years, at which point the solar company may offer to sell you the panels at a reduced price or remove them from your property.

To determine if solar leasing is the best choice for you, it is important to know about all the financing options available for solar panel systems in Florida.

Apart from solar leasing, there are other ways to finance a solar panel system for your home in Florida. These include:

The most common way of financing solar panel systems is through solar loans. This involves taking out a loan specifically for financing your solar panel installation. With this option, you own the solar panels and are responsible for all the expenses and benefits that come with it.

Often confused with solar leasing, a PPA is an agreement where a solar company installs and maintains the panels on your property, but you pay for the electricity generated by them at a fixed rate per kilowatt-hour (kWh). The key difference between PPA and solar leasing is that with a PPA, you only pay for the electricity produced, while in solar leasing, you pay for the use of the panels themselves.

If you have enough savings or can secure a loan on your own, the best way to finance your solar panel system is through a cash purchase. This involves paying for the panels upfront and owning them outright, giving you the highest savings on energy costs in the long run. However, this option may not be feasible for everyone due to the high upfront costs.

Now that we have discussed the different ways of financing solar panel systems in Florida, let's take a closer look the advantages of solar leasing over the other funding options.

As mentioned earlier, the high upfront costs of purchasing and installing solar panels can be a barrier for many homeowners. With solar leasing, you don't need to worry about these costs as the solar company covers them and in return you make fixed monthly payments to the company. This makes solar leasing an attractive option for those who want to acquire solar panels without a significant financial investment.

One of the biggest advantages of solar leasing is that you are not responsible for any maintenance or repairs of any solar equipment of your solar panel system. The solar company takes care of all upkeep and repairs, saving you time and money in the long run.

With a fixed monthly lease payment that is often lower than your current electricity bill, you can start saving on energy costs from day one. This provides a more immediate return on investment on your solar energy system compared to other financing options.

High interest rates on solar loans can significantly lower the savings. In some cases, solar leasing may offer more savings compared to loans, making it a better financial option for homeowners. However, it depends on a lot of factors like the type of loan, current interest rates, and solar panel efficiency.

Every financing options has advanatges and disadvantages, and solar leasing is no different. Here are some potential drawbacks to consider before deciding if solar leasing is the best choice for you:

One of the main downsides of leased solar system is that you do not actually own the panels or receive any tax incentives for them. This means that you cannot take advantage of federal tax credits or net metering, which allows homeowners to earn credit by selling excess energy back to the grid.

While solar leasing does provide immediate savings on energy costs, it may not be as significant as the savings achieved through a cash purchase. This is because, with solar leasing, you are paying for both the use of the panels and the electricity they generate.

The answer to this question ultimately depends on your specific situation and goals. Solar leasing can be a great option for those who want to go solar without a significant upfront investment or the responsibility of maintenance and repairs. However, if you have the means to make a cash purchase or secure a low-interest solar financing loan, this may provide higher long-term savings on your solar system.

It is important to carefully consider all financing options available and consult with solar experts and local solar leasing companies before making a decision that best suits your needs!

In conclusion , solar leasing is a viable option for Floridians looking to switch to renewable energy while also saving money. By understanding the different financing options and weighing their pros and cons, you can make an informed decision about whether solar leasing is the best choice for you.