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Solar leases and PPAs (third-party-owned systems) skyrocketed in popularity several years ago, but may not be the best option. These arrangements allow homeowners to install a solar system on their home without actually paying for the solar equipment. Though homeowners can go solar with no money down, such agreements often expire after only 20 years.
In addition homeowners are entitled up to 26% federal tax credit in 2020 and 22% in 2021 only when they actually own the solar power system. This has an immense financial impact because a tax credit is a dollar-for-dollar reduction in federal income taxes owed. A $10,000 solar system, for example, can qualify for a $2,600 in 2020 and 2,200 in 2021 tax credit. Solar leases also complicate home sales if the new homeowner cannot take over the agreement (Disclaimer: Please consult your tax advisor regarding income tax credit eligibility).
When you take into account that the homeowner never actually owns the system on top of their house and is paying the third party for the free energy he/she collects, the best choice becomes evident: buying is better. At HahaSmart we give you wholesale prices, making buying attainable for many who think they cannot afford it.
All solar equipment comes with a warranty and a guarantee of production quality. In addition, there is usually a contractor warranty on workmanship. Solar panels have an expected lifetime of at least 25 years. In general, the life of the panels depends on the quality of the technology used and the quality of the overall installation.
Photovoltaic panels can use direct or indirect sunlight to generate power, though they are most effective in direct sunlight. Solar panels are still collecting power when the sunlight is reflected or partially blocked by clouds. The only time solar panels do not collect energy is at night.
Yes and No. Your solar powered system will be affected by a power outage if your property is connected to the grid. This occurs to prevent emergency responders from being injured by a potential hazard. You can take your system off-grid and connect to a battery to ensure continuous power during a blackout.
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A solar PV system is custom-designed for your home. Final solar system price may vary based on your location, monthly utility bill, government incentives and rebates, the condition of your home, and local installation prices. Solar PV system output and estimated savings are calculated based on several factors including product type, system production, geography, weather, shade, electricity use and utility rate structures and rate increases. Savings on your total electricity costs are not guaranteed. Financing options and terms vary by location, and may not be available in all areas. HHS Group is neither the lender nor the project installer.
