There are plenty of reasons to consider solar panels. The climate crisis is urgent as ever, the cost of solar is the lowest it has ever been, and the financial incentives for installing panels are only growing. But solar panels are still quite expensive.
If you hope to see the most financial benefit from a solar panel system, experts say buying is better. Buying leads to ownership and leasing doesn’t. “It’s kind of akin to buying or leasing a car,” said Gilbert Michaud, an assistant professor in the School of Environmental Sustainability at Loyola University Chicago.
Leasing or renting reduces the barrier to entry, Michaud said, but it also can be tricky if you plan to move.
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. But experts say buying or leasing can both be good paths, as long as you know what you’re getting yourself into.
Here’s everything you need to know to decide if buying or renting solar panels is better for you.
What’s the difference between renting and buying solar panels?
When you buy a solar system for your home, you have to pay for (or finance) the entire cost of the installation, and the panels and equipment belong to you.
“If you buy panels, you own the system and you have to pay those high upfront costs, but there’s a lot of pros to it too,” Michaud said.
