How To Choose Between Solar Leasing And Solar Financing In Canada

Going solar is a great way to save money on energy. Still, solar panel installation requires you to make some vital decisions, such as selecting the right solar panel installer and whether to lease or finance your solar panels. Both options have advantages and disadvantages, and your circumstances will determine the best option.

In this blog post, we’ll look at solar leasing and financing in Canada and explain the critical differences between the two so you can make an informed decision about the best option for your home and find the best solar panel installers for the job.

What Is Solar Leasing And How Does It Work In Canada?

Solar leasing is a popular option for homeowners who want to install solar panels on their property without making a large upfront investment. A solar lease allows homeowners to have solar panels installed on their property and pay a monthly lease payment to the company that owns the panels.

The most important thing to understand about solar leasing is ownership. Unlike purchasing solar panels or using a solar panel payment plan, leasing solar panels means you do not own them. Instead, the equipment is owned by a third party. For a fixed rate or fee calculated or determined by the leasing company, you can install solar panels on your home.

How Does Solar Financing Work In Canada?

Solar financing is another popular choice for homeowners who want to install solar panels on their property. Solar funding allows homeowners to work with a lender or a solar panel installer to secure a loan to purchase and install their solar panels. The loan is then repaid over time at a fixed interest rate. In Canada, several federal and provincial solar incentives and rebates have made it easier for homeowners and property owners to go solar.

This type of solar financing allows homeowners to own their solar panels outright, which can be advantageous. Solar financing is a popular choice for Canadian homeowners who want to go solar but also want to own their panels and enjoy long-term electricity bill savings.

Also Read: Saskatchewan Solar Rebates & Incentives

The Key Differences Between Solar Leasing And Solar Financing

The main difference between solar leasing and solar financing is that with a solar lease, the homeowner does not own the solar panels. Thus, they are not eligible for benefits that come with the ownership of solar panels. Whereas with solar financing, the homeowner owns the solar panels. Hence, they’re eligible for tax credits and government incentives for solar panel installation.

Additionally, with solar leasing, the homeowner will pay the business that owns the panels every month. Contrarily, with solar financing, the homeowner will pay the lender monthly.

Considerations For Choosing Between Solar Leasing And Solar Financing

There are several key considerations to keep in mind when deciding between solar leasing and solar financing:

Upfront costs: Since homeowners do not have to pay for solar panels or installation, solar leasing typically has lower upfront costs than solar financing. Solar financing allows homeowners and businesses to install solar panel systems on their properties without having to pay the full upfront cost. In some cases, there’s even no need to pay the downpayment.

Ownership of the solar panels: Homeowners do not own the solar panels with solar leasing. On the other hand, solar financing allows homeowners to own their solar panels. Resultantly, they are able to take advantage of tax credits, government incentives and long-term electricity bill savings that come with solar panel ownership.

Monthly payments: Solar leasing typically has lower monthly payments than solar financing. However, it is critical to consider both options long-term costs and savings.

Maintenance and repair: The company that owns the panels is responsible for the maintenance and repair of the boards under solar leasing. When using solar financing, the homeowner is responsible for the care of their solar panels.

The property’s resale value: When leasing solar panels, the panels belong to the leasing company and cannot be transferred to the new homeowner, thus reducing the property’s resale value. However, in solar financing, the solar panels ownership can be transferred, hence increasing the resale value.

About Sundawg Solar

Sundawg Solar is a Saskatchewan-based renewable energy company. We have a wide range of solar systems, including commercial, residential, and off-grid solar power systems. We are dedicated to maintaining environmental purity and safeguarding it for future generations. Learn more about Sundawg Solar here.

Looking for experienced solar panel installers? Contact us today.