A greater number of residents are going solar with the emergence of a solar lease in Massachusetts. With $o down and low monthly payment, Baystaters can make clean, green electricity while saving money in the very first year. Please keep in mind, a lease isn’t the only way to go solar with zero down. New solar loan programs are giving leases a run for their money as loans are equating to a better return for Massachusetts homeowners.
Many people equate a solar lease to a home mortgage. A homeowner chooses to buy a home, not a rent a home because they want to control their costs with a monthly mortgage payment rather than pay increasing rental costs. Similarly with a solar lease, you are locking in a low electricity rate. On average, electricity prices have increased about 5% in Massachusetts annually. If for instance, your monthly electricity bill is $100 today. Compounding the 5% increase annually, your monthly electric bill would be closer to $265 twenty years from now. I’m sure you would agree that’s a pretty scary thought.
Basic Lease Options:
- Prepaid Lease – You pay the total cost of the lease upfront. The leasing company will monetize the tax credits and depreciation to give you the lowest possible cost.
- Monthly Lease – You can pay a fixed or escalating monthly payment over a 20-year term.
SRECs: Solar Renewable Energy Credits, or SRECs, are tradeable certificates that represent all the positive environmental attributes of electricity generated from a solar electric system. Each time a PV system generates 1,000 kilowatt hours (1 megawatt hour) of electricity, an SREC is issued which can then be sold. You have the option to keep your SRECs or sell them to lower your monthly cost or upfront cost.
Down payment: You can put $0 down or pay for the lease upfront (i.e, prepaid lease)
Annual Escalators: 0 to 5%
Credit Restrictions: Typically 700 FICO Score or higher
End of Term Options: Renew Lease, Purchase System, or SunPower will remove the system at no cost
As a solar installer, I am agnostic as to if you decide to finance a PV system through a loan or lease. Brightstar Solar will custom tailor a solution based on a prospective customer’s personal and financial goals. We are a licensed Massachusetts solar company and we work with our customers to help navigate the installation process, maximize incentives, and manage all of the rebate and permitting paperwork involved. If you have a home or business in Massachusetts and are interested in solar power, please contact us for a free evaluation.
