Should You Buy Solar Panels or Rent Them?

There are plenty of reasons to considersolar panels for your home.

But solar panels are stillquite expensive.

Buying leads to ownership and leasing doesn’t.

Can solar panels save you money?

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So which is better?

The answer depends a lot on your personal circumstances.

There are pros and cons to each option, and they serve different goals.

Here’s everything you should probably know to decide if buying or renting solar panels is better for you.

What’s the difference between renting and buying solar panels?

You’ll still be generating clean energy and potentially lowering your electricity bills.

There’s no one-size-fits-all recommendation when it comes to buying or leasing solar panels.

In that case, a lease might be the better, faster path to solar, Michaud said.

“Not everyone owns a big home and can afford spending $20,000,” Michaud said.

(Again, think of the analogy of leasing a car.)

But the best way to know for sure is to get an estimate from a solar company.

Michaud advises getting a couple of estimates, and working withtrusted solar companies.

you could also check out CNET’s list ofbest solar companies.

And locking in a fixed electricity rate could hedge against future energy cost increases from a traditional utility provider.

Another way of thinking about the price of solar panels is the average price per watt.

A 6-kilowatt sized solar system at this price per watt would equal roughly $18,000 before incentives or rebates.

You’ll avoid paying any interest on a loan, which will also allow you torecoup your investment faster.

Many banks and solar installers offer loan products that are specifically designed for solar panels.

Some states even offer low- or zero-interest loans to incentive solar installations.

Check with your local bank or utility company to see what’s available in your area.

Instead, you’ll be on the hook for a monthly payment.

“It’s a lot of logistical headaches,” Michaud said.

Some credit cards have a high enough limit to cover a $15,000 solar installation.

But that doesn’t mean you should take advantage of it.

Generally speaking, credit cards are not meant to finance large home improvements.