Unfortunately for consumers across the country, low interest rate solar leasing company loans, power purchase agreements and solar leases are three of the most expensive ways to have solar on your roof. Up to three times the cost of a purchased system from a local or regional dealer using the same name high quality, reliable equipment..

The low interest rate loans offered by the solar leasing companies may appear enticing at first glance but these low interest rate programs are very expensive for the leasing companies and in the end for the system purchaser. They are known as "buy down loans" and can cost the leasing company thousands of dollars in fees which are simply padded into the price of the system.

While many fair market priced solar dealers are installing systems for less than $3.00 per Watt, the solar lease companies are pricing their systems between $4.50 to well over $5.00 per Watt, completely wiping out any savings that their systems might yield on your electric bill.

To put this into perspective, a typical 5 kW grid tied solar system from a fair market priced solar dealer would cost you less than $13,500 before incentives while the same 5 kW grid tie solar system from a solar leasing company will cost you up to $30,000 before the same incentives!

You'll have to forfeit the 30% federal tax credit and any applicable cash rebate to the leasing company and you won't get tax deductible interest on your lease payments. By purchasing your system with a $0 down FHA solar loan or PACE financing instead, you may qualify for tax deductible interest. Solar leasing company leases and power purchase agreements don't offer tax deductible interest.

Not only are you forfeiting the lucrative 30% federal tax credit worth thousands of dollars but to make matters worse, most if not all $0 down solar leases include an annual payment escalator that will increase your monthly payment by up to 2.9% per year, every year for 20 years. A lease payment that may start at $80 per month can run into the hundreds of dollars toward the end of a lease contract.

Imagine what would happen if your utility company decides to, or is ever mandated to add fees or decrease their net metering compensation like what happened in Nevada. On a lease with annual payment increases, you could end up being forced to pay more for your electricity than if you never had signed that air tight, escalating solar lease contract in the first place.