Without a doubt a home solar energy system is environmentally friendly and, in the long run, highly economical.  However, even with government rebates, purchasing a professionally installed solar panel system is very expensive.  Since many homeowners can’t afford the substantial up-front costs, several companies are now offering the option to rent solar panels.

Overall Concept:

Although leasing terms differ between companies, the basic premise is the same:

• You make an initial small deposit, which will be refunded when your lease expires.
• Solar panels are then installed which correspond to your overall energy needs.
• Every month, you pay rent on the solar panels to the company you leased the panels from.

If you live in an area with net-metering, which most U.S. states have, any excess power you produce will cause your electric meter to run backwards.  The standard electric meter used for most homes, tracks the flow of electricity in both directions.  If you produce more power than you need, it goes back into the grid and you will receive credits to offset any future electricity used.

Renting vs. Buying:

Buying a  solar panel system for a typical home can cost $40,000 or more.  Depending on the start-up costs and monthly savings on your utility bill, you can expect to break even in about 10 years.  After that, it’s all free energy and money in your pocket.

If you rent solar panels your up-front costs are minimal and you may be able to lock in a rate that will not increase over the years.  When you first start out your rental cost may be higher than purchasing electricity from your utility company.

Savings should come as energy costs will rise over the years and you continue to pay a flat lease amount.  However, rentals are a riskier investment than buying solar panels as there is no guarantee that you will save any money in the long run.

The major benefit of leasing is its impact on the environment.  The low start-up costs could allow millions of homeowners, who rent solar panels, to reduce their dependence on conventional non-renewable resources that are harming our planet.

It’s hard to say if the cost to rent solar panels will be higher, lower, or the same as purchasing electricity from traditional sources.  However, one thing is certain.  If this inspires a lot of homeowners to use solar energy, the environmental benefit to our planet will be obvious.

Here’s a related news article about a family that went solar by renting:

Rent Solar Panels