As energy bills are soaring nationwide, solar panels are becoming an increasingly attractive option for homeowners. However, there's one issue standing in the way of more widespread adoption: the upfront cost.

What is a solar lease?

Industry experts spoke to CNET about circumventing the initial outlay through solar leasing. An oft-debated topic is whether leasing is preferable to buying outright. Each comes with its own pros and cons, and the terms of the debate have shifted in the post-U.S. subsidy landscape. So which makes the most sense?

Is a solar lease the right option for you?

It depends. The article helpfully likens solar leasing to leasing a vehicle: You have use of the panels for a fixed period before they're returned. In some cases, just like with cars, you may have the option to purchase them later. With a solar lease, there's no money down, and the company is responsible for any maintenance issues. The regular monthly payment (typically between $50 and $250) will be fixed by the terms of the contract, so lessees will be largely unaffected by any rate hikes.

The downsides? Leases aren't usually eligible for any remaining incentives and can be a wrinkle in selling a home. Depending on the system and your energy use, you may still receive the occasional energy bill. Additionally, quite a few states have restrictions on solar leasing. Finally, the long-term savings of ownership will be higher. 

Corey Ramsden, vice president of Go Solar Programs at Solar United Neighbors, told CNET: "The most important thing is that your annual lease payment costs and your utility bill costs are lower than what you used to pay annually for electricity."

How online tools make solar energy easy.

Whether you choose to lease or purchase, figuring out your options is made easy with TCD's Solar Explorer. You can compare quotes from vetted contractors to save up to $10,000 on installations or explore $0-down solar subscription options. One such option, Palmetto's LightReach leasing program, can unlock lower utility rates instantly (up to 20% lower).

To really get the most out of solar energy, pair it with an energy-efficient heat pump. TCD's HVAC Explorer can provide options for finding the right system for your home, slashing your heating and cooling bills by up to half. The Palmetto Home app could also help you access up to $5,000 in rewards.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.

FROM OUR PARTNER Save $10,000 on solar panels — or get them on your roof without paying for purchase or installation Whatever your solar budget, Palmetto can help you save. If you want to buy your own panels, Palmetto's concierge advisors can help you save up to $10,000 on installation through a network of preferred installers. And if you'd rather get solar savings without upfront costs, Palmetto's revolutionary LightReach subscription program can deliver. LightReach lets you lease solar panels with no money down, making it painless to lock in long-term savings. Palmetto covers a 25-year warranty for the panels, which means you'll get reliable performance without unforeseen costs. To get started, just answer a few basic questions about your home and connect with Palmetto's experts to find the option that's right for you. Start Saving

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