Solar leasing can make home solar power more accessible » Yale Climate Connections

Home solar panels can help people save a lot of money long-term.

But installing new solar panels can cost more than $10,000 upfront. So in many states, homeowners can lease solar panels instead.

Larry Sherwood is president of the Interstate Renewable Energy Council.

Sherwood: “It’s obviously much easier to just pay as you go rather than putting out that large amount of money at the beginning.”

With a solar lease, a homeowner essentially rents the panels and uses the electricity they produce, which lowers their overall energy bill.

And the leasing company is typically responsible for maintenance and repairs on the panels, so leasing can also save homeowners money on upkeep.

But one downside is that people who lease solar panels are not eligible for solar tax credits.

And Sherwood says they also need to check their lease terms carefully to understand what will happen to the lease if they decide to sell their home.

Sherwood: “You don’t want the lease to be something that you need to worry about at that really busy time.”

But for people who cannot afford the upfront costs of new solar panels, solar leasing can be a cost-efficient way of switching to clean energy.

Reporting credit: Ethan Freedman / ChavoBart Digital Media