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Colorado Springs
707 E Fillmore 80907
719 633 0208
Toll Free 1 800 632 0208
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Pueblo
101 Spring Street 81003
719 542 5631
Toll Free 1 800 540 5631
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Solar Photovoltaic
Lease or Purchase?
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Most solar leases simply redirect the consumer's dollars from the utility company to the solar leasing company. The customer signs a lease for fifteen to twenty years and the solar leasing company installs their power plant on your roof and sells you the power it produces. The lease usually requires a payment that will be equal to about 80% of your current electric bill. But your payment is based on the utilities' energy pricing and the lease cost will increase based on the utility price increases; currently 5% to 8% per year. With a leased system you are guaranteed a payment forever or until you buy the system and also guaranteed continued price increases as the price of energy increases. After the lease period you renew the lease or buy the system at market value. With a leased system the leasing company will collect the government credits, utility rebates and incentives because they own the system not you. In conclusion the advantages of leasing the system are the approximately 20% in utility cost savings and the fact that you are using clean renewable solar energy.
So what are the advantages of purchasing a solar system? By owning the system you will never be susceptible to energy cost increases your fuel is "FREE SUNSHINE". If you finance the system your payment is the same for the term of the loan and the system is yours when the loan is paid off. The loan periods are normally less than the minimum lease periods and the you own the system and enjoy free energy from the sun. From the day you put your system into service it starts paying for itself and the rate of payback increases as the price of energy that you don't have to purchase increases. By purchasing the system you qualify for the government credits, utility rebates and incentives. Some of the incentives available now in our area are a 30% federal tax credit, no state sales tax on the system, no property tax increase on the value of the system until 2017 and low interest loans from select financial institutions. Check the link to www.dsireusa.org to review all incentives available in your areas. The advantages of purchasing a system are far more lucrative than leasing and if you meet the qualifications for the lease you will more than likely qualify for the loan programs. In the end you own the system as opposed to renting it and the energy you produce is free.
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