How Much Do Solar Panels Cost? 

The average solar panel system for American homes is five kWh (5,000 watts). The cost of solar has decreased significantly (around 20%) in the past five years. Now, the average cost per installed watt comes out to be between $2 and $4, in both the United States and Canada. This cost includes both the cost of the panels themselves, other electrical equipment, and the installation. Before subsidies, this means that you would be paying between $10,000 and $20,000. 

With government and municipal subsidies, however, you should be able to reduce that cost by up to 50%, bringing the total cost to as low as $5,000. If you save around $1,300 per year on your electricity bill, the solar panel system will pay for itself in between four and ten years. This solar power calculator will help you determine what type of system is best for you and how much you could save. 

How Residential Solar Leasing Works

Pros of Leasing Solar Panels

Leasing a solar panel system enables you to get access to renewable energy with zero down at the time of installation. For people without a large amount of cash savings, this is often the best way to start producing renewable energy. While you will be making a monthly payment for the long term (most solar leases are between 15 and 20 years), in some cases, your monthly repayments might actually be lower than what you are saving on your utility bill. Thus, by leasing, you might be able to get renewable energy without any upfront cost while saving on your monthly bill. There are not many opportunities in our world to make a profit without any upfront investment!

If you produce more energy than you consume, you might be able to sell the excess power back to the grid. Over 40 States and all Canadian Provinces allow for net metering. This essentially means that your electricity meter will run backward during the day when your panels are producing energy. Then, at nighttime, it will reverse when you are pulling power from the grid. If you generate more than you take from the grid, then you receive credits. Your local utility company will pay you for giving back to the grid, usually at the current price of energy. This is yet another way to offset the monthly cost of leasing solar panels. 

Cons of Leasing Solar Panels

On the downside, by tying yourself into a long-term lease, you might not be able to take advantage of cheaper solar energy in the future. Solar panels are becoming less expensive, and new technological developments in the near future might make solar panels more affordable for you and your family. Also, leasing solar panels can present a challenge if you decide to sell your home. 

Solar leasing is ideal for people with limited cash, and who plan on staying in place for the long-term. It presents a unique opportunity to jump in and begin to make the transition to renewable energy. Remember to make sure that your lease contract has a buyout clause at the end of the lease. 

Community Solar Options

For people who do not own property where they can install solar panels, you might want to consider investing in a community-owned solar project. Through this mechanism, you help to finance a small solar farm that is grid-connected. In this scenario, your home does not directly receive the energy produced by these solar panels. But, you would receive virtual net credits that get applied to your domestic energy bill. These credits offset the cost of utility-provided electricity and might even allow you to make money if the community solar farm produced more than what you consume. Before investing in this type of project, you will need to make sure that your state and local utility company allow for virtual net metering.