Breaking Down Solar
By the Numbers:
I’ve wrote about Solar before and it’s one of those technologies that just keeps evolving. I like to compare it to “big screen” TV’s back in the mid 2000’s. At that time, you would commonly see people spending $4,000 – $5,000 but today it’s $400 – $500 for the same size and better quality. Today we are going to focus on Solar Leases, which are offered by a number of companies including Solar City, Sunrun, Sunpower, etc. Let’s look at some truths.
- 20, 25 or 30 Year Leases in most cases
- Normally a 2% annual escalation in Payment Amounts
- If starting @ $143 per month in a 20-year scenario w/2% escalation, then you’ll end at $208.32 per month in the final year
- That equals $41,694.12 in total payments over the lease duration, but does not include Taxes & Fees you’ll still be responsible for with APS/SRP
Solar Leases can be EXPENSIVE and may or may not really save you $$$ in the end. You could just be paying someone else besides your utility provider. Here are some additional things to think about before rushing into that lease.
- If you want to sell your home, you will get $0 in return on an appraisal
- Buyers will need to qualify for the lease
- You still don’t own the system after the lease ends… sometimes you have an option to buy at an unknown price, sometimes not
- Be careful on whom is responsible for repairs and costs to remove/re-install if you need to make roof repairs around that area
- Efficiency guarantees normally decrease over time even though your payment increases…
Do your homework! Not all Solar is bad, but it’s not all smart for your wallet either. We would be glad to discuss your personal options with you to decide whether it makes sense or not.