Leasing Solar Panels In Illinois 2023: Is It Worth It?

In 2023, leasing solar panels is an increasingly popular option for homeowners that want the financial benefits of solar panels without any of the upfront costs. Leasing Solar Panels In Illinois 2023: Is It Worth It?

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In this article, we’ll discuss how solar panel leases work, compare the benefits of leasing vs purchasing solar panels and we’ll outline the terms of the solar panel leases that we offer at Green Home Makeover.

What Is A Solar Panel Lease?

With a solar panel lease, the solar panels that are installed on your property are paid for by a third party, and you pay a fixed monthly fee to lease them.

You own all of the electricity produced by the solar panels, as well as any utility credits that are generated by feeding excess electricity into the grid.

With a solar panel lease, you can expect to save 35-40% compared to what you would otherwise have paid in utilities.

What Is A Solar Power Purchase Agreement?

A Solar Power Purchase Agreement (PPA) is similar to a solar panel lease, in that you don’t pay for the solar panels that are installed on your property. The primary difference is that rather than leasing the solar panels, you pay for the electricity you use.

With PPAs, you typically save only 10-20% compared to what you would otherwise have paid your utility company, and PPAs aren’t currently available in Illinois.

Comparing Leasing Vs Buying Solar Panels

There are advantages and disadvantages to both leasing and buying solar panels, and the option that’s best for you is dependent on your unique circumstances.

Below, we’ve outlined some of the key advantages and disadvantages that differentiate the two options, to give you a better idea of which option would best suit your home.

Comparing Leasing Vs Buying Solar Panels

Advantages Of Leasing Solar Panels

Perhaps the biggest advantage of leasing solar panels is the fact that you’re able to make net savings from your solar system from the day that it’s installed
Another highly beneficial aspect of solar panel leases is that they come with no upfront costs, making them a great way for those on a tight budget to benefit from solar
If your roof specifications aren’t optimal for solar power generation, leasing your solar panels is likely to be a more cost-effective option in the long run
Despite the fact that you don’t shoulder the burden of any of the upfront or maintenance costs, you’re still able to save significant sums of money by leasing solar panels

Disadvantages Of Leasing Solar Panels

Although you don’t have the burden of any of the associated costs, overall it’s likely that your long term savings will be lower than if you’d purchased your solar panels
Due to the fact that you’re not responsible for the purchase cost of the solar panels, you won’t be eligible for the Solar Tax Credit or Illinois SRECs solar incentive

Advantages Of Buying Solar Panels

The biggest advantage of buying solar panels is perhaps the fact that in the long run your overall savings are likely to be more substantial
If you buy your solar panels, studies have shown that it can significantly boost the value of your home and make it sell 20% faster
If you live in Illinois and you buy your solar panels, you’ll be eligible for the SRECs solar incentive, which can reduce the overall cost of your system by around 25%
If you pay a certain amount in federal taxes and you live anywhere in the USA, you may be eligible for the Solar Tax Credit, which is worth 30% of the cost of your system

Disadvantages Of Buying Solar Panels

The biggest disadvantage of buying solar panels is the high upfront cost, which can mean that you have to wait many years before you see net savings
Another disadvantage of buying solar panels is that you are responsible for all of the maintenance costs

What Makes The Most Sense Financially? Leasing Or Buying Solar Panels?

It’s impossible to give an answer to this question that will be applicable to everyone, as the right option for you will be determined by your individual circumstances.

However, in most cases, if your roof specifications are optimal for solar power production and you can afford the upfront costs of a solar panel system, you will save more money in the long run by purchasing your solar panels.

However, the average payback period of solar panels in Illinois (the amount of time it takes to see net savings) is around 8.7 years, according to Forbes Home.

If you’re on a tight budget, you want to make immediate savings or your roof specifications are suboptimal for solar power production, a solar panel lease may be the right option for you. Leasing Solar Panels In Illinois 2023: Is It Worth It?

What Makes The Most Sense Financially? Leasing Or Buying Solar Panels?

Green Home Makeover: Solar Panel Lease Terms

At Green Home Makeover, we offer 20 year solar panel leases to customers with a credit score of 650 or better for a fixed monthly fee. Most of our customers save 35-40% compared to what they would have paid in utilities.

At the end of the 20 year lease period, you have three options:

You can have the solar panels appraised by a third party and then purchase your system for a fair price
We can arrange for the installer to remove the solar panels and restore your roof to its original condition
You can have a new solar panel system installed with a new lease contract at a discounted price

What Happens If I Lease Solar Panels And I Sell My Home?

One of the most common questions we get asked by customers that are considering a solar panel lease is what will happen if they sell their home.

The answer to this question depends on the lease provider – some companies have terms that can be punitive in these circumstances, and will expect you to pay to end the contract.

If you lease solar panels from Green Home Makeover, however, the lease will automatically be transferred to the new homeowner, with no additional fees.
Leasing Solar Panels In Illinois 2023: Is It Worth It?

Is A Solar Panel Lease Right For Me?

In most cases, for people on a tight budget, a solar panel lease is one of the best ways to benefit from the financial savings of solar without the sting of the upfront costs.

However, if you’re on a low income, you may be eligible for free solar panels, through a scheme known as Illinois Solar For All (ILSFA).

Illinois Solar For All offers free solar panels, or shares in community solar projects, to income-eligible applicants who live in Illinois.

Green Home Makeover is an approved vendor of Illinois Solar For All, and we’re proud to have been able to offer the benefits of solar to many Illinois residents, via participation in this scheme.

Thinking Of Going Solar? Trust The Experts

Whether you’re buying, leasing or receiving free solar panels via Illinois Solar For All, solar projects entail a lot of work – there’s lots of hurdles to jump over, and lots of red tape.

At Green Home Makeover, we offer more than 8 years of industry experience as solar consultants, managing solar projects for our clients so they can get solar panels the stress-free way.

We’ll assess your home and your energy requirements, design your system and manage your solar project, from A to Z. All you have to worry about is being home on the day of the installation.

If you’d like to know more about how we can help you install solar panels, get in touch today for a free, no-obligation consultation and quote.
Leasing Solar Panels In Illinois 2023: Is It Worth It?