By Pat Doody
Solar dilemma: To lease or to purchase?
Business Spotlight
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You know that you want to add solar energy to your home, but where do you start? The guy at the big box store told you that he can set you up and you can lease the entire system for 20 years to keep your payments really low but is this really the best way to go?
Aaron Dretel, owner of Advanced Water & Solar company suggests that outright purchase may have more advantages than leasing for most homeowners. First of all, with a lease you do not own the equipment until the end of the lease – 20 years – at which time it may be antiquated and need to be replaced. Also, should you decide to sell your home, you may be unable to do so until your new buyer agrees to take over your lease or buy it out – one extra escrow complication you do not need.
Advanced Water & Solar is a HERO contractor. HERO is a program that is offered in partnership with the city or county and through which your solar energy system can be financed and paid for as part of your annual property tax bill. The ownership of the system is transferable and stays with the property should you decide to sell your home. Financing is based on the property equity and not on your credit score. An owner can choose from 5, 10, 15 or 20 year plans. All HERO contractors are licensed and verified.
Working with a contractor has other advantages as well. You will have more options for your system. The big box stores usually carry one brand of panels and related equipment and you are limited to what they sell. Using an independent contractor allows for more flexibility in your system. Depending on your budget, you have the choice of foreign or domestic equipment and any number of system combinations designed to your specific needs.
Aaron says that a custom designed system can increase system efficiency by 20%. Although you may pay more up front, you will be saving that 20% in return. A knowledgeable contractor who fully understands the tier system of credits can educate you on how to get the most out of your investment. For example, a system can be designed that will build up your winter credits to balance out your summer usage. Aaron adds that most people don't realize that although utilities will write you a check for the energy you produce, you will receive a check amounting to about 4 cents for every 14 cents worth of energy that you produce. Just be aware that there are another options.
For those living in really rural areas, there is the option of actually being off-the-grid. This option is not available at the big box stores. As a third generation well driller with over 30 years of experience, Aaron said that a well pump is one of the biggest power users. He explained that this is how he started designing solar energy systems. He can create a system of solar panels that will store power in a series of batteries (usually eight or sixteen – more is better) and using a back-up generator, just in case. He added that he has designed solar powered pumps for watering cattle. With this solar powered/battery type of system, power can actually be supplied to machine shops that are out in the middle of nowhere. Aaron can do an assessment and design a system that is expandable as well as save energy.
Aaron emphasizes that now is the perfect time to act on that solar powered system you have always wanted. At least for the next year, the government is still allowing a one time 30% tax credit on the total installation cost of your system. This incentive is not available with leasing. Let him educate you on the many options available and design a solar power system for your home that will suit your needs and fit within your budget. Call him today at 661-867-2390 or 661-972-2120 for an assessment and quote.
See the Advanced Water & Solar ad on the Front Page.
