Solar Installation Made Easy
For years, high up-front costs and complicated setup made solar installation difficult for Californians who wanted solar energy to power their homes. Now, solar lease agreements for residential allow homeowners the opportunity to install solar panels on their home roofs for no cost and with little work for the homeowner.
Under a solar lease agreement, qualified solar panel installers provide the solar panel installation and lease the energy to the homeowner. That means the cost, complexities, and risk of doing a solar install go away for the homeowner. Solar installation under a solar lease is a simple way to save on energy bills.
The Phases of Solar Installation
The solar installation company does the necessary calculations to determine the size of solar system required, using your previous monthly energy bills, roof angle, roof size and the amount of shade in the process. Based on these findings, the solar installer designs an electric plan and submits it to the city to obtain a city permit. Once approved, the installer orders the right type of panels and an inverter for you. At the day of solar installation, the installer mounts the panels on your roof so that the panels get the most sunlight possible. In California, placing them facing south at an angle works best, since your panels will be getting direct sun for a longer time during the day.
After your panels are mounted, the contractor will finish the solar panel installation by hooking them into your home with a converter, which transforms the direct current your solar panels collect to the alternating current your home can use. If you live an area with net metering available, the contractor will connect your solar panels to the main power grid in your area, so that your meter can feed in your extra energy to the grid and save you money!
Solar installation as part of a solar lease?
Basically, the process of installing a solar system in your home is identical whether you lease or purchase the solar panels. The main difference is that in solar lease the home owner does not need to worry about the type of system being installed, the maintenance, or part replacement. In a leasing program, you are granted a “production guarantee” by the installer, so the system is exactly like a rental car: there is zero responsibility—and no worries—for you.
So how do solar leasing companies and solar installers make money?
Because they own the solar panels installed on your home roof, the solar leasing companies file for tax credits instead of you. However, instead of taking the tax credit themselves, the solar companies turn the credit into revenue by selling the credit to investors. Solar leasing companies use this revenue, together with financing obtained from investors, to pay for the up-front costs of the solar panel system. Since the payments made on a solar lease will typically add up to more than the initial cost of the solar panel system, solar leasing companies make money in the long run.
Why don’t I just purchase the panels and do the solar panel installation myself?
Installing a solar system is no task for rookies. Unlike painting or gardening solar systems, complete home solar systems are more complex and expensive, so unless you are a contractor or electrician, leave this to the pros!
As mentioned before, these days in solar leasing agreements, your local solar installer takes most of the initial high costs and enjoys the tax breaks and government rebates, leaving you with extremely cheap energy for many years.
It’s a real no brainer!
We are a top California solar installer. Call us and we can answer any additional questions you may have!