Talking About Green

With energy prices climbing higher and higher each year, many people are looking for ways that they can get some relief. Although we’ve relied on nuclear and coal-fired power plants to keep the lights on for many decades, it’s becoming painfully obvious that these are dangerous and environmentally hazardous sources of energy.

If you want to do your part to create a cleaner future, one of the most important things you can do is supplement your reliance on these fuels with alternative energy like wind or solar. The only problem is that building a wind turbine or installing a home solar system is a big decision that requires a sizeable investment before you start seeing savings on your energy bill.

Because the entry costs of solar are so high, companies around the world are starting to offer solar leasing as a more affordable alternative to ownership. In case you’re unfamiliar with this hot solar financing option, here are some questions you should ask before deciding on a solar lease:

1. Do you own your home? While there are some ways that renters can still invest in and benefit from home solar systems, installing a rooftop array is usually only an option for home owners.
2. Will you be in your home for at least ten years? Unlike car lease, solar leasing companies usually require owners sign a contract with a lease of land 10, 15 or 20 years. Things could get sticky if you have to move before your contract expires.
3. Can you afford a monthly payment? When you choose a solar lease, you will reduce or even eliminate your monthly utility bill, but you’ll still have to make monthly payments to the leasing company. These payments cover the cost of installation and maintenance while the array is on your roof, but it’s still something to consider.
4. Are your energy prices rising year after year? If you’ve noticed a steady increase in your utility bills year after year, choosing a solar lease may enable you to lock your energy rates in at a permanently lower rate while neighbors without solar leases continue to pay higher rates every year.

It’s important to reiterate that if you are financially able, purchasing your own solar system does have some benefits that a solar lease can’t provide. For instance, tax incentives and rebates for installing a solar array can be substantial, but if you lease, this money will be paid to the installation company and not you.

Would you ever consider a solar lease? Tell us why or why not in the comments!

Lorna Li is the Editor in Chief of Green Marketing TV and Entrepreneurs for a Change. She specializes in Internet marketing for socially responsible business and enjoys writing about green business, social enterprise, and location independent lifestyle. Follow Lorna on Twitter @lornali

.