Everything You Need to Know About Leasing vs. Purchasing Solar Panels

 

When considering solar panels for your home in Australia, you have two main options: purchase vs lease solar panels. Both have their merits and considerations, and the best choice depends on your personal financial situation and long-term energy goals.

Upfront Cost

Leasing: Leasing solar panels typically involves very low or no initial costs. This is great for homeowners who prefer not to invest a large sum upfront.

Purchasing: Buying solar panels initially costs more, but with the decrease in solar prices and availability of government rebates and zero-interest loans, it's becoming more affordable.

Ownership

Leasing: The solar panels remain the property of the leasing company, not the homeowner.

Purchasing: You own the solar panels outright. This ownership comes with the advantage of increasing your home's market value.

Monthly Payment

Leasing: You pay a fixed monthly fee for leasing the solar panels.

Purchasing: If you pay the full price upfront, there are no monthly payments. Otherwise, you might opt for a financing options for solar panels which would require monthly payments until fully paid.

Maintenance & Monitoring

Leasing: The company you lease from will usually take care of maintenance and monitoring of the solar panels.

Purchasing: Maintenance and monitoring is customer's responsibility. The solar company may offer subscription based monitoring. You may contact any SAA approved solar installer for periodic maintenance of the system.

Customization and Upgrades

Leasing: Customization and upgrades during the lease period are limited as they depend on the leasing company's terms.

Purchasing: You have full freedom to customize, upgrade, or expand your solar system as needed.

Energy Bill Savings

Leasing: Leasing solar panels can immediately lower your monthly energy bills as your lease payment will likely be less than your typical electricity bill.

Purchasing: Over time, owning solar panels can lead to significant savings on energy bills, as you essentially produce your own electricity for free once the panels are paid off.

Government Incentives

Leasing: You generally cannot avail government rebates or incentives; these usually go to the owner of the system, which would be the leasing company.

Purchasing: When you buy solar panels, you can directly benefit from government incentives and rebates, reducing the overall cost of the system.

System Upgrades

Leasing: When it comes leasing or buying solar panels, upgrading a leased system can be complicated and is typically bound by the terms of your lease agreement.

Purchasing: You have the flexibility to upgrade your system whenever new technology comes out or as your needs change.

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