Looking into Leasing Solar Panels? Think Twice
Leasing solar panels hasn’t turned into the great deal that many expected as solar companies go out of business and tax breaks and incentives get slashed.


“I am the CEO of an accounting firm that is looking into leasing a solar system for our 8,000-square-foot office building. Some of your articles on solar have been very negative as to leasing options. We have met with solar salespeople who have given us energy-saving projections that seem reasonable, as well as the impression that leasing is the best way to go. Are you still to opposed to leasing these systems, and if so, why? Thanks, ‘Mike.’”
Yes, I am strongly opposed to leasing solar, and I’ll tell you that not a week goes by when I have not heard via this column from businesses and homeowners who are pulling their hair out and going crazy while trying to obtain service on their leased unit because their seller went out of business, as thousands have across the country. For a real eye-opener, I recommend reading Time magazine’s September article Rooftop Solar Power Has a Dark Side.
For a CPA to ask these questions makes me wonder a lot about his ability to do the math, or to have researched the false economy of leased solar systems and the sheer number of solar companies that have failed in recent years.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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, first, let me tell you about Brenda, Chris and his mother’s 2023 Christmas that never really happened. Back in 2017, the couple moved into his mother’s home to help care for her ailing husband. They were looking for ways to save money and met with a sales rep from Vivint Solar, “who showed us realistic-appearing projections of huge energy savings on a system we could lease from them. There was nothing due up front: They would install, maintain the system — which they owned — and we would pay them for the energy produced over 20 years.
“We were promised prompt service if anything broke down, and all worked fine for about two years, and then the inverter failed — as they often do. Despite repeated calls for service, we were ignored for months, paying the normal rates of our expensive utility.”
Surprise! You owe us $4,000!
As Chris explained, every month, Vivint, which was taken over by Sunrun in 2020, would make automatic deductions from his bank account to pay for the energy the system produced. “The amounts varied greatly,” he pointed out. “And then, on December 15, we got a bill for over $4,000 with no explanation, no justification beyond the statement that they had failed to properly make deductions over 18 months.” Chris confirmed that they did make monthly deductions over the 18 months, but this $4,000 was in addition to those charges.
Request for proof falls on deaf ears
“I asked them for a detailed accounting (of what the extra charges were for), which they refused,” Chris said. “Then someone from their collections department phoned and insisted on large payments, again refusing to justify the amount. We had no Christmas, no presents, afraid to spend money. That is when I found your articles, and we spoke.”
In our phone conversations, I learned that Chris is an unemployed agricultural worker, and Brenda is off work, being treated for breast cancer. None of that mattered to the bill collector. So on January 26, I emailed Sunrun’s general counsel, with a cc to the company’s media department, simply asking them to look into this and work out something fair. Later the same day, Chris phoned and told me, “Mr. Beaver! They are forgetting the entire balance! They confirmed it via email.”
So, hats off to Jeanna Steele, Sunrun’s general counsel. This was a powerful example of the power of the press and an attorney who did the right thing, the fair thing. So, in my book, Jeanna is a real gem.
So, how much energy savings have Brenda and Chris realized all these years? “Around a thousand dollars a year, and it wasn’t worth all the recent grief,” Chris said.
Why leasing is often a lousy idea
Let me be blunt. If you can buy a system with cash or obtain a loan for a solar system at a reasonable interest rate, owning solar panels directly is the way to go, rather than going with a leased system.
Also, if there are tax breaks and incentives — which just got nuked in California, and sales are down 82%, according to CalMatters — they are not available with a lease.
Next, selling a property that has an active solar lease is often difficult to impossible, as the buyer must agree to assume the remaining contractual obligation. I have never spoken with one real estate agent who’s had anything good to say about trying to sell a property with a leased solar system.
Finally, I do not want anyone to walk away from this story thinking that I oppose solar energy in general. Quite the contrary! Friends who own their systems generally are delighted with the energy savings and budget for replacement of inverters and backup batteries.
There is one more consideration: your age. Will you live long enough to recover the out-of-pocket cost or complete a 20-year lease? Do you want to burden family with that “brilliant” solar idea?
Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.
Related Content
- Why Can’t You Ever Use Your Timeshare?
- Six Things Not to Do if You Want to Resolve a Conflict
- Is Your Neighbor's Security Camera Pointed at Your Window?
- Yes, You Can Discuss Your Salary With Your Co-Workers
- Seven Website Issues That Can Get You in Hot Water
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column, "You and the Law." Through his column, he offers readers in need of down-to-earth advice his help free of charge. "I know it sounds corny, but I just love to be able to use my education and experience to help, simply to help. When a reader contacts me, it is a gift."
-
Dow Hits New Intraday High on Fed Day: Stock Market Today
Not even the most important stock in the world could keep the oldest equity index down on a significant day for markets.
-
Savings Goal Calculator
Tools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both Worlds
Before investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop Investments
Truck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.