Solar Lease vs Buy Calculator

This calculator helps you compare the costs and savings of leasing versus buying solar panels.

Enter the size of the solar system in kilowatts.
$
Enter your current electricity rate per kilowatt-hour.
Enter your annual electricity usage in kilowatt-hours.
Select the term of the solar lease.
$
Enter the Power Purchase Agreement rate per kilowatt-hour.
%
Enter the expected annual increase in electricity rates.
Enter your zip code to adjust calculations based on local rates.
Total Lease Cost
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Total PPA Cost
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Savings with Lease
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Savings with PPA
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Solar Cost and Savings
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Key Takeaways

  • Compare the total costs of leasing versus buying solar panels.
  • Understand potential savings with solar leases and PPAs.
  • Factor in local electricity rates and incentives using your zip code.
  • Adjust for annual increases in electricity rates to see long-term impacts.

How to Use the Solar Lease vs Buy Calculator

To use this calculator, input your solar system size, current electricity rate, and annual electricity usage. Select your preferred lease term and enter the PPA rate if applicable. You can also provide your zip code to tailor the calculations to local conditions.

Formula

The calculator uses the formula: Total Cost = Annual Usage * Rate * (1 + Annual Increase)^Years. It calculates the total cost of electricity with and without solar options over the lease term.

Example Calculation

For a 5 kW system with a $0.13/kWh rate, 10,000 kWh annual usage, and a 20-year lease term, the calculator will show the total lease cost, PPA cost, and savings compared to traditional electricity costs.

Tips for Using the Calculator

  • Ensure all inputs are accurate for the best results.
  • Consider future electricity rate increases when planning.
  • Use your zip code to get more precise estimates.

Considerations

When deciding between leasing and buying solar panels, consider the long-term financial implications, potential savings, and local incentives. Leasing may offer lower upfront costs, while buying can provide greater savings over time.

Explore other calculators like the Mortgage Calculator and Loan Calculator for more financial insights.

Frequently Asked Questions

What is the difference between leasing and buying solar panels?
Leasing solar panels typically involves lower upfront costs but may result in higher long-term expenses. Buying panels can be more expensive initially but often leads to greater savings over time.
How does a Power Purchase Agreement (PPA) work?
A PPA allows you to pay for the electricity generated by solar panels at a fixed rate, often lower than traditional utility rates. This can lead to savings on your electricity bill.
Why should I consider my zip code in the calculations?
Your zip code can affect local electricity rates, solar incentives, and sunlight availability, all of which impact the cost-effectiveness of solar energy solutions.
What factors influence the annual increase in electricity rates?
Electricity rates can increase due to inflation, changes in energy supply and demand, and regulatory adjustments. It's important to factor these into long-term cost calculations.
Can solar panels increase the value of my home?
Yes, solar panels can increase home value by reducing energy costs and appealing to eco-conscious buyers. However, the impact varies by location and market conditions.