Pros and Cons of Leasing Vs Owning

Solar Acquisition Options: A Comprehensive Guide to Solar Acquisition Options: Purchasing, versus Leasing, and Power Purchase Agreements

Solar acquisition options probably are one of the most important things to know first before going into solar. In this article, we’ll delve into the pros and cons of three popular options: purchasing solar, reverse leasing, and power purchase agreements (PPA)Welcome to Supreme Solar’s comprehensive guide on solar acquisition options. If you’re considering adopting solar energy for your home or business, it’s essential to understand the various avenues available to you. By the end, you’ll have a thorough understanding of each option, enabling you to make an informed decision that aligns with your specific needs and goals.

1. 1. Purchasing Solar: When you purchase a solar system, you become the owner, reaping several advantages. Firstly, you qualify for tax credits, reducing the overall cost of the system. Additionally, purchasing offers significant long-term savings as you’re not bound by increasing lease or PPA costs. Owning a solar system can also increase the value of your property, providing a potential return on investment. Furthermore, you benefit from the included warranty, ensuring peace of mind and protection against unforeseen issues. However, it’s important to consider potential upfront costs and financing options, which typically range from 7 to 25 years.
   2. Reverse Leasing: Reverse leasing, also known as leasing or renting a solar system, offers a different approach to solar adoption. With reverse leasing, you can enjoy the benefits of solar energy without the upfront costs typically associated with purchasing. Instead, you make fixed payments for the use of the system. While the utility savings may not be as substantial as purchasing, you still benefit from reduced electricity costs. Reverse leasing also eliminates the need for a good debt-to-income ratio, making it accessible to a wider range of individuals. However, keep in mind that you won’t qualify for tax credits, and the lease costs tend to increase annually.
   3. Power Purchase Agreements (PPA): Power Purchase Agreements (PPAs) function similarly to reverse leasing, with a few distinctions. Under a PPA, a third-party company installs and maintains the solar system on your property. You agree to purchase the power produced by the system at a fixed rate over an extended period. While PPAs eliminate upfront costs and ongoing maintenance responsibilities, you relinquish ownership of the system and forego the opportunity to claim tax credits. Additionally, the fixed rate may increase incrementally each year, impacting the long-term cost-effectiveness of the agreement.
   4. Supreme Solar’s Cost-Effective Solution: At Supreme Solar, we understand the importance of maintaining the efficiency of your solar system. We have recognized the need for regular cleanings and offer a cost-effective solution for our clients. We extend a 50% discount on cleanings to ensure optimal performance and longevity of your solar system. Our commitment to providing comprehensive services sets us apart from other solar providers, as we strive to deliver exceptional value and customer satisfaction.

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