The maintenance responsibility differs significantly between solar loans and solar leases primarily due to ownership of the solar panel system:
- Solar Loans: When you finance your solar panels through a solar loan, you own the system outright. As the owner, you are responsible for all maintenance and repairs of the solar panels throughout their lifespan. While solar panels generally require low maintenance and come with warranties lasting 10 to 25 years, any upkeep or repairs beyond what warranties cover fall to you. You may also need to insure the system as part of your homeowner’s insurance. Ownership under a loan also allows you to receive federal tax credits and other incentives. However, the responsibility for system upkeep and potential repair costs remains with you as the homeowner.
- Solar Leases: In contrast, with a solar lease, the solar company or a third-party owner retains ownership of the solar panel system installed on your property. This means the leasing company is typically responsible for operations, maintenance, and repairs during the lease term. They often offer service programs to cover these issues. However, some lease agreements may differ, so it is important to clarify maintenance terms in your contract. While this arrangement relieves you of maintenance duties, solar leasing companies can sometimes be slow to respond or difficult to contact for maintenance issues, which might cause inconvenience. Since you do not own the system, you are not eligible for tax credits or incentives; these benefits go to the leasing company.
In summary, with a solar loan, you own and maintain the system yourself, while with a solar lease, the leasing company owns the system and handles maintenance, but you have less control and possibly less responsiveness on repair issues. The trade-off is between long-term ownership with maintenance responsibility (loan) versus lower personal maintenance burden but no ownership benefits (lease).
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-maintenance-responsibility-differ-between-solar-loans-and-leases/
