I'm looking into getting solar panels. I was offered a 25 year lease. I pay nothing out of pocket. The company puts the panels onto my roof, and I start paying ~50% less for my monthly electricity. I'm not planning to build anything on top of my roof. On the surface it seems to me like something I should obviously do. However, I don't feel totally comfortable doing this, just because I don't know enough about the topic. I would like to hear from people who have (or considered getting) solar panels, If/what there are any downsides to this. and what's the tradeoff or anything important to consider here.

In short, solar may or may not be good for your house depending on where you live and how much sun your house is exposed to, but leasing is a bad idea and you should buy the panels instead.

Also something to keep in mind, how old is your current roof? Repairs or replacing the roof will cost more with the panels

I'm not sure about that. The guy I'm dealing with told me that if the roof needs repairs/replacement, he does all of that before putting the panels up. And I still don't have to pay anything up front and my electric bill is still cut in half 🤷

Incorrect. Roofs can require repairs in a few years even after they make their repairs, and it will be much more expensive. Rachel is correct.

He can't guarantee that your roof won't need fixing or replacing for 25 years

I have a new roof, which is the only reason I was willing to put a 30 year investment on top of them.

Exactly the same here, I would only put solar panels on a brand new or very new roof

also what's the buy out of the lease if you decide to move early in the next 25 years

@gray-window-90406 they should also be able to do a solar study to see exactly what your savings would be instead of a rough estimate. It's usually less than what the sales person tells you

Repairs or replacing the roof will cost more with the panels

@creamy-spoon-14332 Do the panels cause the damage to the roof? Or are you saying that removing and re-installing the panels in order to repair the roof can cost you more than the savings?

the latter

they should also be able to do a solar study to see exactly what your savings would be instead of a rough estimate. It's usually less than what the sales person tells you

I was told that with this specific lease, the contract includes a warranty, that even if my panels won't end up generating the amount promised, the leasing company will cover it.

still wont save you from the increase repair costs or any break lease terms

Will do.

Hmm this sounds a little suspicious, why would they offer that guarantee unless they're making a lot of money off the lease that it's worth it 🤔 I would compare the cost of buying the panels outright

they are making a lot of money on interest and tax benefits so they can guarantee the production

BTW, good use case for chat gpt.

I will pass you in a solar agreement. I will ask you question regarding the agreement Your answers will consist only from the data in the agreement If you are unsure about something, you will say "I'm unsure" Your answers will have a quote from the part of the agreement you derived them from

they are making a lot of money on interest and tax benefits so they can guarantee the production

And they package them together then sell them on Wall St 🙂 Just like sub-prime mortgages in 2008. There are a lot of assumption that go into this they will not hold up over time as well - for example, a lot of states are raising monthly fees for connecting solar panels to the grid, some states are no longer letting the utility pay you for the electricity, the renewable credits might not have a market soon, etc.

Anyway, I backed out of this lease idea. My main reasons were because I reviewed the contract and realized that there is basically no way out of it. And if I ever need to do repairs on the roof, I have to give them 90 day notice beforehand, and they have to uninstall the panels and I have to pay them whatever they will decide then to charge me for the "service, equipment and overhead", which basically means that they can just charge me whatever they wish. Also, this is a huge liability cause if any of the panels break for reasons that are "out of their control" including natural disasters or anything else, I have to pay for new panels. If I ever decide to build on top of the roof, it's just going to be impossible (except if I pay them the sum of all payments until the end of the contract plus a ton of fees...). If I decide to sell the property, and the new buyer is not interested in taking over the lease. They will remove it, but I will have to pay the cost of "removal, overhead, equipment and marketing!, plus the cost of them finding another person where they can put it onto their roof and the cost of that installation. Another reason is that if I decide to sell the property, the money I paid for the lease can not be counted as an expense that negates the profits on the property, as opposed to if I buy solar.