The initial investment for a photovoltaic (PV) system can be high and deters many potential buyers. However, PV systems offer numerous advantages, including lower energy costs, environmental impact, and government tax breaks.
A solution that is becoming increasingly popular is renting a solar system. This option allows homeowners to reap the benefits of solar energy without incurring high upfront costs.
Several companies offer PV rental programs, and each program’s terms vary. In most cases, the homeowner agrees to pay a monthly fee for the solar system, and the company agrees to maintain and insure the system.
While there are many benefits to renting a solar-powered generator system, some risks also need to be considered. Below I’ve summarized information about both options to help you make the best decision for your needs.
Difference Between Renting and Buying a Solar System
When it comes to solar energy, consumers have two main options: purchasing or leasing a system. Both options have pros and cons, and the final choice depends on individual circumstances.
You are responsible for all maintenance, insurance, and reporting requirements when you buy a solar system. However, you also have full control over selecting the installed components.
In this way, you can opt for a technology that will offer you advantages in the future – for example, through the later integration of a wall box, a heat pump, or a lithium-ion solar battery storage system.
If you rent a photovoltaic system, you have none of these obligations. The downside is that you probably won’t be able to take advantage of possible future technological upgrades.
How High are the Acquisition Costs When Buying a Solar System?
The Germans have been world leaders in solar energy for many years, with around 1.5 million installed PV systems across the country. The high level of investment was encouraged by generous subsidies, but these, too, have been gradually reduced in recent years.
Consumers are increasingly looking for an optimal price-performance ratio when buying a solar system. When purchasing a solar system, you can expect investment costs of between 9,000 and 17,000 euros (5 to 13 kWp + without energy storage).
In the past, about 80 percent of this was attributable to the material costs – i.e., solar modules, pure sine wave inverter , cabling, and mounting system – and 20 percent to the installation of the system on the house roof.
If you include the planning and connection costs, the ratio is now closer to 70:30 due to price reductions in components and increased labor costs.
Renting a solar system: advantages and disadvantages
As mentioned above, renting PV systems offers numerous advantages. However, one should know all the risks before concluding a possible contract. Below are the pros and cons you should consider when deciding.
Advantages
No acquisition costs: A key advantage of leasing a solar system is that there are no investment costs. Tenants do not have to save up several capitals first. For entrepreneurs, it is also advantageous to remain liquid during the run and continue operating with the capital saved.
Convenience: Renters benefit from a complete package that includes planning and installation, insurance, maintenance, and repairs. This comprehensive service means that you don’t have to worry about the maintenance of your system and can be confident that it will continue to run smoothly for years to come. In the long run, that peace of mind is worth considering the investment.
Planning security: As a tenant, one of the biggest advantages of solar systems is the guaranteed fixed price. This means that the rental price will not change for the next 20 years, and you have the peace of mind that your monthly expenses will remain the same. This can be a great relief regarding budgeting and planning for the future. A fixed price also gives you more security when planning energy costs, which can help you make informed decisions about your energy consumption.
Disadvantages
Rent control can be both an advantage and a disadvantage. If it turns out afterward that the monthly rent is too great a financial burden or not economical for the tenants, they are usually out of luck.
Another important point is the contractual commitment. It isn’t easy to judge in advance whether the leasing company is working properly and maintaining the equipment consistently – or not.
Ultimately, potential renters need to do their research before signing a lease so they know what they’re getting themselves into.
When investing in a PV system, you must be well-informed and aware of the possible risks.
What happens, for example, if the landlord’s supply guarantee expires or the PV system is disrupted for longer?
These are just some questions you should ask before signing a contract. It is also advisable to seek advice from an expert to avoid adverse conditions.
Finally, reading authentic testimonials from other tenants can help you find a reputable provider.
By taking these precautions, you can ensure that your off-grid solar system investment is safe and successful.
Cost of a Photovoltaic Rental
The monthly lease price is fixed for 20 years, so you don’t have to worry about increasing costs.
Plus, the larger the facility, the higher the monthly rental price, so you can be sure you’re getting the most out of your investment.
The average rent for a PV system is in a price range of around 80 – 200 euros per month.
Optionally, you can add solar power storage and a wall box to your system, stabilizing your energy costs.
With solar system rental, you can be sure that you get good value for your money and that your energy costs will remain manageable for years.
Alternatives to Renting or Buying a PV System in Cash
Credit Financing
When it comes to financing a photovoltaic system, there are several options that you can consider. One option is to take out a loan to finance the installation.
This way, you don’t have to pay the high initial investment all at once. Instead, you have to pay back the loan plus interest over time. As a rule, this is still cheaper than renting a PV system from a provider.
However, if you decide to finance your PV system with a loan, you are responsible for the operation and maintenance of the system yourself, without the help of a provider. When deciding, you should consider that when you buy a PV system, you have full control over the installed technology and can make changes according to your ideas.
Conclusion: Rent or Buy Photovoltaics?
If you have the necessary equity, you usually decide to buy a system directly, as this is the more economical option in most cases.
Those who don’t have the financial means or don’t want to borrow often choose to rent a facility instead. Both options have their advantages and disadvantages.
Anyone who buys a solar power system directly has full control over it. He makes important decisions about the system himself and is flexible when it comes to change requests.
Plus, you don’t have to worry about monthly rent payments. However, you may not have as much money available for other investments.
Anyone renting a solar power system does not have to worry about purchase costs or maintenance, as the rental agreement usually covers these. However, you may be unable to make changes and adjustments to the facility.
Both variants allow you to obtain cheap electricity that is still good for our environment.
