System can be bought during or at the end of the lease

However, if the size is not correctly related to household usage needs, or the products used are not of high quality, the homeowner will suffer later on due to poor investment. Along with not benefiting from owning the solar panel system outright and gaining use of the tax credit to begin with. Purchasing price results in the higher of the in contract purchase price, or current market value; not a set amount known to the homeowner.

Minimizing financial benefits of using solar generated electricity

30% tax credit does not belong to homeowner. The tax credit belongs only to the owner of the system. Along with a lien placed on your property to ensure payment and in accordance with the contract. The stipulations within the contract of a lease or a PPA becomes a liability attached to the house itself.

Difficult transference of signed agreement when deciding to sell your property

New home buyers must agree to the pre-agreed upon terms, or a fee of early termination will be applied. The fee along with disclosure of possible roof issues due to a removed solar power system will be the responsibility of the seller. Along with the added task of applying for a meter downgrade and removal from interconnection program through your local utility company; resulting in unwelcome high rates of utility costs.

Continuance of increasing utility rates

Monthly payments are lower than current utility costs, but the homeowner is not escaping the overall problem of a third party utility company with increasing rates. In effect, adding an additional utility charge.

Incorrect sizing and fees reflecting household energy usage

Under leases and PPAs, System size is usually not created to cover your average household usage needs, but rather aimed to financially benefit the third party company. The monthly charges relate to the system production and increasing rates rather than electricity usage of the household.

Scare tactics

Not providing homeowners with options of products and pricing, not allowing the homeowner to become knowledgeable about the financial opportunities available when investing in the generating system attached to their house. The average leasing and PPA companies utilize high pressure techniques and vague terms such as “lease now, save money” to entice homeowners to agree on terms. What is missing from this setting is the ability to explain every step involved in the process of going green and saving money. Allowing the homeowner to be aware of all parts of the contract. When high pressure techniques and vague terms are used, the homeowner rarely has the opportunity to read the small print covered in the overwhelmingly long contract package. An example of misleading techniques utilized is where a leasing company provides a false sense of safety with “free maintenance” packages, when only information about product and options will truly benefit customer. As our previous article explains how simple the maintenance really is.


Why not have options and agency throughout the entire lifespan of your solar power system? The tax credit you receive when filing your taxes can directly be used toward paying off your system, or for a well-deserved vacation; your choice. If the system is a collection of high quality solar system products that result in a production relating to your household electricity usage. If you desire to sell your home there will be no headache involving transference of contract, only higher marketability.  The electricity produced from the solar system can only be a benefit to your wallet, property value, and the environment.

Stay tuned for our next article discussing the use of solar on rental units

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