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Solar Installation: Purchase Or Lease?

February 28, 2012 | Comments: 0 | Views: 137

A solar installation is to save you money on your electric bill. It may supplement it or eliminate it. When installing a solar system for your home, should you buy it or should you lease it?

There has been a solar installer advertising that he could lease a solar system to a homeowner for $45 a month for 6 years. When you agree to that lease, you as a homeowner, will not own the system.

When the solar company installs your system as a lease, that company would then apply to receive tax incentives which are 50% up to $25,000 from the state of Louisiana and 30% from the federal government. So, the installer owns that system. The installer may receive $19,200 for a $24,000 system from these tax incentives, depending upon what size he installed.

After 6 years, the solar installer will take off the system. Of course, the homeowner will see their electric bills rise and want to purchase back the lease system. Then the solar installer would make another large amount of money once again from the same homeowner depending what he charges at that time to sell it to them.

The installer may de-rate the system after 6 years, but he could still sell it to you for $10,000 or more. It would still be guaranteed for another 19 years. If you don't want it they will remove it from your house and sell or lease it to someone else.

Let me point out another secret here. If this system is a 4 KW system, that would not run your entire house on solar power including your central air conditioning. The homeowner would still have to pay your local power company. You would be paying your local power company along with the lease to the solar installer. Depending upon the size of the system, you may not be eliminating your electric bill. You would be paying $45 a month just to rent (or lease) his modules on your roof.

How does that benefit you? It doesn't. You are still paying the power company. You are still paying the leasing company. If this particular lease system is a 4 KW, it may only reduce your electric bill by $40, maybe. So instead of knocking $40 off your bill, you pay the leasing company $45 a month.

These leasing companies may not be telling homeowners the whole picture. The installer is getting the money that you should have gotten if you would have purchased the system. If you would have purchased the system instead of the solar installer, you would have gotten that $19,200 incentive. If you did, you would have a balance of $4800 which could be paid off over 4 or 5 years and you as a homeowners would own the system.

Don't miss this main point! The problem is that you could have owned your own system. These leasing programs are taking advantage of a homeowner (or customer) and being dishonest in the way it is presented. The homeowner (or customer) is losing. Yes, you don't have to put out the initial money. But somebody is taking your credits of almost $19,200 from you. Yes, it's great to get a solar system on your house but what good is it doing you if you are paying $45 a month and you are getting a credit of $40 a month or less?

On a 4000 watt system, you may not get much more than that. See for yourself. Go online and click on your state at PW Watt which was created by the National Renewable Energy Laboratory (NREL) and is required to file for your tax incentives. It tells you the performance data or what reduction you will receive on your electric bill. Solar will help you achieve energy independency from your local power company and save you money. As a bonus to our environment, solar will help reduce our fossil fuel dependency and reduce air pollution.

And now I invite you to learn more energy efficient tips that you as a homeowner can be taught. I also give you tips to decrease your electric bills and save you money. Go now and visit my site at

Source: EzineArticles
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Robert Farbe


Solar Installation


Solar Powered System

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