Solar energy expert breaks down popular 'misinformation' about leasing panels — here's what people are getting wrong

There are three main ways to go solar — paying cash upfront, entering a lease or a power purchase agreement (PPA), or securing a loan. One solar energy expert discussed the benefits and drawbacks of each on a Reddit post in the r/solar community. 

"Ownership and leasing a solar system are both excellent ways to go solar," the OP expressed. They added: "I have been lurking on this sub for a while and what I can't stand the most personally is spread of misinformation."

However, depending on your unique circumstances, one option may make more sense than another. 

If you have the cash upfront and you plan to live in your home for longer than the solar payback period, which is about 7.1 years for most solar owners, paying for the system upfront is a sensible choice. As a solar shopper, you receive the tax credits and incentives that come with purchasing a new solar system. After the payback period, for the next 20 years or so (the remaining lifespan of a solar battery), you will enjoy low-cost to free energy from your solar system. 

This method of owning solar, however, requires a higher upfront cost, and the full extent of its benefits hinges on you staying put in that house. 

"Really think about how long you are keeping the house. A lot of younger folks sells their first or 2nd homes before 10 years to move on to a bigger place," the OP explained. You can't take your solar with you when you move, so owning your solar to reduce energy bills, in that case, may be counterproductive. 

If you don't have the cash upfront, a second way to own solar is to secure a loan. However, "most loans in today's market ha[ve] high interest rates," the OP wrote. This may make owning solar even more expensive than it should be. 

You can also go solar by entering a lease or a PPA. 

When you lease solar, someone else owns the solar system, but you pay a monthly fee to use the power it generates. Solar leases are often fixed, which means you know how much you will pay each month for energy. These leases may also have escalator clauses stipulating an annual increase of about 1-3%. 

With a power purchase agreement, you're also paying to use a solar system you don't own. Unlike a lease, however, your energy bills will vary depending on usage, but you pay a discounted rate for the electricity, compared to rates from your traditional utility company. 

What is the biggest reason you haven't added solar panels to your home? The cost 💵 I need more information 🤔 I don't own a home 🤷 I already have solar 😎 Click your choice to see results and speak your mind.

Going solar is one of the best ways to save money on home energy. It is also a cleaner, alternative energy source that helps reduce planet-overheating gases. 

For many, however, owning solar may seem unattainable as the upfront cost of a system is quite expensive, and loan interest rates only exacerbate costs. 

Leasing solar may be a great option for those who still want to go solar. Palmetto offers low-rate solar and battery storage leases so you can maximize the savings and benefits of solar without any of the headache that comes along with owning it. 

"One of the few level headed posts/responses here. All kinds of buying/leasing solar have their positives and negatives," one Reddit commenter said. 

"Nice informative post. Thanks," another user said.

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