ZERO DOWN FINANCING vs LEASE

Buying vs. Leasing:

Five things to consider . . .

1. Cash. Do you have the cash on hand to buy a solar system outright? If yes, you probably will want to buy the system (see reason No. 4 below for why it’s “probably” rather than “definitely”).

2. Financing. If you do not have the money on hand to pay cash for the system, how will you finance it? And how much will taking out a loan add to the total cost of the system? If you have to borrow a large amount of money to buy a system, solar leasing may be a better option for you. Look at the numbers and see if financing pencils out for you.

3. Cash flow. If you do have cash on hand for a solar system, consider whether paying cash for the solar system will affect your cash flow for other large (potential cash) purchases, for instance, an electric car.

4. Your whole financial picture. Crunch the numbers on the $10,000 to $20,000 (or more) you will need to have on hand in order to buy a solar system outright in terms of alternative uses for the money. For instance, would you be better off financially if you lease a solar system and use the $20,000 to pay down your home mortgage more quickly? 

5. Is solar leasing available? As of Jan. 2010, in the U.S. solar leasing is available in parts of Arizona, California, Colorado, Connecticut, Massachusetts, New Jersey and Oregon. If solar leasing is not yet available where you live, you should do some research to figure out how soon it might arrive in your area before you make the decision to buy a system!