Get a Solar System on the Cheap

published 13 October 2010

By Caitlin Dewey

Robert Schumacher might have plunked down $30,000 (less after tax credits and rebates) for a solar-energy system for his 3,000-square-foot Southern California home. Instead, he took out a 15-year lease with San Francisco-based SolarCity, which put 30 panels on his roof at no upfront cost. He's paying $141 a month to rent the solar panels, but he's confident that savings on his electricity bills over the next 15 years will put him thousands of dollars ahead.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

But not all leases are equal. Look for one that allows you to sell excess energy back to the grid and that locks in a rate over the life of your lease. Ask about renewable-energy rebates -- leasing means you'll miss out on the federal residential energy credit and some local incentives, but a provider should pass those along in the form of a lower monthly rate. If you can afford it, consider a prepaid leasing option if your solar provider offers it. Prepaying even a part of your lease can double or triple your net savings.

Topics

Features