Westchester County, NY is one of those locations in the United States where going solar makes an excellent investment. If you are thinking about switching to energy produced by solar panels, you will often have to decide between solar lease and solar purchase. Let us explain the differences so that you can consider the different factors before you make a decision.
Solar Lease in Westchester County
When you decide to go for a solar lease, you can expect that you will not have to deal with any initial payments. You can start enjoy energy savings immediately, so to speak. A solar lease is recommended for individuals who do not like to take risks, and simply want to keep things easier to handle. It will also be a good option for those who do not qualify for a tax break.
One of the best things is that you do not have to make any money down for a solar lease. Add to that, you still enjoy monthly savings compared to when you were paying your monthly electricity bill. Not to forget that the solar lease can be transferred to the next owner in case you decide to sell your house in the future. Of course, the installer takes charge of every single part of the process from solar panel installation to solar panel repair to solar panel maintenance.
What Happens During A Solar Lease?
It all starts by signing an agreement with the solar panel installer where the monthly price of the lease will be stated. Usually, the total price of the lease is divided into very minimal monthly prices for two decades or 20 years or depending on the term of the lease. Once the agreement has been signed, the panels will be installed and from there, you will start experiencing savings on your electric bills, at least after a few months from date of installation.
The Savings You Get With Solar Lease
Monthly increments on payment of about 2.5% may be experienced over the period of the lease but this is lower than the approximately 3.5% increase that comes with the usual electricity cost. You can save more or less $550 dollars over the last year of the lease term.
Solar Purchase in Westchester County
If you decide to go for a solar purchase in Westchester County, it’s understandable that this will involve an upfront investment. Whether it’s a residential installation or commercial installation, this will be a significant sum. However, solar purchases entitle you to the maximum energy savings you can enjoy in the long term out of all payment methods for solar panels in Westchester County.
What Happens During A Solar Purchase?
When you are ready to buy an entire solar panel system, the rate of return may look low, considering that you have to shell off a huge amount of cash upfront. But if you try to look into cost computations, you will realize the many benefits that this option offers. In fact, at the very first part of the installation, when you are to pay over $20,000 for the system after rebates have been deducted from the total cost, you will already be experiencing savings. You will also be able to enjoy solar tax credits applicable to the state of New York outright and then save on your electricity bills from the time the panels have been installed.
The Costs Of Solar Purchase
Let us say you go for a 5-kilowatt solar panel system. This will cost you around $22,000 initially. But you have to remember that tax incentives will at least deduct amount from this total. In New York where Westchester County is, for instance, you will be given a rebate of $200 for every kilowatt. Considering you are investing on a 5-kilowatt system, that will mean a thousand dollars of rebate all in all. Apparently, the initial cost will be about $21,000 only.
This is just the start. By the end of year one, the federal government will then give you a total of 30% in tax credits. The tax credit will be based on the cost of your system, in this case $21,000 x 30% or $6,300. If your tax does not reach $6,300, you can apply any remaining amount to the next year.
The Savings You Get With Solar Purchase
The advantage of going for solar purchase will all boil down to the savings you will get over time. During the first year, you will save a thousand dollars on your electricity bill. That can be used for your children’s tuition or for any other emergency expenses you will have later on. If you try to take things further, you will realize you have paid off your investment in the next 9 years. Add to that, the total amount you save will mean profit for you until the end of the life of the solar panel. In fact, your savings will be more than the amount of investment you have made. You will end up saving about an estimated $29,000 over the 25-year term.
How Should You Choose Then?
You have to remember that the figures given above are estimates based on a $22,000 investment for a solar panel system. Depending on your home’s requirements and how much you spend for the installation, the figures can either go up and down.
Opting for either Westchester County solar lease or solar purchase will still make a great investment. Of course, the final choice is yours to make but if you need help in understanding the two options in relation to your specific situation, give us a call today and let us do a complete assessment for you.