Solar Leases Vs. Solar Loans in Florida: Don't Get Ripped Off

Solar Leases Vs. Solar Loans in Florida: Don’t Get Ripped Off

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Solar leases and solar loans in Florida are great alternatives to paying the up-front costs of solar panels. With no money out-of-pocket loans now available, solar is more accessible than ever. But how do you know which is best between a solar loan and a solar lease? In this guide, we’ll give you a clear understanding of the two options. We also welcome you to contact Florida Power Services ‘The Solar Power Company’ to learn more about how we can help you finance your solar dream.

Solar Loans vs Solar Leases:

Solar Loan Solar Lease
Homeowner Owns The Solar Equipment?
Upfront Costs?
Improved Property Value?
Tax Credit Eligibility?
Cause complications when selling a home?
Read Related: Solar Tax Credit Increased to 40%!

What Are Solar Leases?

Solar leases are a solar financing option that allows you to pay a monthly fee for the use of the solar panels and their electrical production, but you never actually own the solar panels. They are typically 20-year-long agreements. It can be an appealing option to new solar users who want a reduction in their electricity bills, as you don’t need to pay for the panels upfront. However, there are some considerable downsides to be aware of so you don’t get ripped off!

Benefits of Solar Leases:

  • Reduce your upfront installation costs.
  • Maintenance and liability are on the solar leasing company, not the owners.
  • You may get the option to buy the panels at a discount at the end of a lease (similar to a car leasing agreement).
  • Great utility bill reduction and savings.


  • You never own the solar equipment.
  • You miss out on local incentives
  • You miss out on federal tax credits
  • Solar leases typically increase the monthly installment once per year, potentially undercutting savings.
  • You are likely to pay more in total than you would when buying solar panels.
  • The solar panels will not boost property value as they are not part of your property.
  • Breaking a lease can be complicated if you need to move.
Read Related: Florida Solar Incentives 2023: How to Save Thousands

Does Solar Leasing Count as Debt?

If you lease your solar equipment in Florida, the lease payment must be included in your debt-to-income ratio because leased systems are considered personal property and not part of the house.

Don’t Get Ripped Off!

Did you know, you are likely to pay more in total via a solar lease than you would when buying solar panels with a solar loan!

What Are Solar Loans?

Solar loans are a solar financing option where you become the owner of the solar equipment, but without paying the total price upfront. Instead, you pay a monthly fee to repay the costs covered by the loan company or bank). As a solar installation can be as much as $20,000, this is a very common financing option that Florida residents use to achieve their solar dream. With many loan options available, it can allow even the non-wealthy to acquire solar panels with no out-of-pocket upfront costs!
  • Annual interest rates
  • Monthly payment requirements
  • The opportunity to pay no money out of pocket!

The Benefits of Solar Loans:

  • NO out-of-pocket expenses to purchase solar panels.
  • You can have a fixed APR.
  • You have fixed payments.
  • You can still be eligible for federal tax credits – which could save you thousands.
  • May be eligible for local solar incentives.
  • Generate income via net metering.
  • Great savings and utility bill reductions.
  • Lower total cost than a solar lease.
  • You own the panels.
  • Your property value increases dramatically.

Negatives of Solar Loans

  • Slower return on investment compared to paying upfront.
  • You are responsible for the maintenance (though warranties and guarantees apply).

What Costs Does a Solar Loan Cover in Florida?

Solar loans in Florida typically cover all costs of the solar panels and equipment and the installation costs. Equipment includes roof mounting, brackets, batteries and solar inverters. However, solar loans don’t cover maintenance costs or energy purchase costs.

How Long are Solar Loans in Florida?

The length of a solar loan can vary, with most lasting between 15-25 years. It is common to choose a long loan length to spread the costs over many years, so a monthly payment can match the average energy bill savings paid by the solar installation. This allows solar panel owners to ‘break even’ in the initial years of the loan, and save money fast! Alternatively, some people take shorter loans to gain ownership of their panels faster.

Types of Solar Loans:

Secured Solar Loans

Secured solar loans can be acquired from the solar installation company or a bank and you can provide collateral for the loan (such as a car or the solar panels themselves). With this you can receive a lower interest rate. You can also improve your chances of acquiring the loan.

Unsecured Solar Loans

Unsecured solar loans do not require collateral. That means you don’t risk losing your solar panels if you get behind on payments, but you will have a higher interest rate and some people may get rejected.

What Do You Recommend?

Florida Power Services ‘The Solar Power Company’ always recommends going with a fixed-rate loan over a solar lease or PPA. Solar leasing doesn’t make as much sense as it used to, as solar panel costs have decreased massively and financing options have greatly improved. On our solar loans we offer APR starting at 3.99% no prepayment penalties, and loan payments lower than utility bills. With utility rates increasing 2 to 3 times a year and as much as 30% over the past three years, we advise our customers to take action now to protect themselves against the rising cost of utility power.

Get a Florida Solar Loan Today

Florida Power Services ‘The Solar Power Company’ partners with local financing companies to provide no-money out-of-pocket solar loans in Florida, allowing all homeowners to achieve their solar dreams fast! Without the need to bust the bank or have large savings, you can get started today – paying less on your monthly payments than your utility bill! Don’t forget that now is the time to act to save 30% through federal tax credits. Contact Florida Power Services “The Solar Power Company” today to get started on your Florida solar installation Lock in your price now, before it’s too late! Apply for a Fixed Rate Solar Loan Today!
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