Last Updated on May 30, 2023 by Rose Morah
You may be wondering whether or not to lease Tesla solar panels, or if there is any point in leasing if your payments will not go towards ownership.
Well, in this article, we are going to help you make an informed decision before you decide to install Tesla solar panels.
But first, Is renting Tesla solar worth it?
That depends on a number of factors.
- Factors to consider before renting Tesla solar panels
- Why leasing Tesla Solar may not be worth it
Factors to consider before renting Tesla solar panels
The following factors will help you decide whether renting Tesla solar is worth it:
1. The amount of electricity bill you pay every month
Well, before renting Tesla solar panels, it is very important to first find out what it will actually save you.
So, the questions that you need to ask yourself are:
- Will the energy produced by solar panels result in cheaper electricity costs?
- Will the cost of renting solar panels be more or less than your electricity bill?
To help you answer these questions, I recommend doing the following:
- Get a basic estimate or professional estimate of the energy production
To get that, I recommend using this site. You only need to enter your home address or where you want the Tesla solar installed.
This or other similar sites will not give you accurate estimates. However, you will at least have a general view of your area.
If you are interested in getting almost accurate estimates, I recommend getting a professional come to your home.
- Do the calculations to find out if it’s going to be cost-effective.
In order for the Tesla solar leasing to be cost-effective, your monthly electricity bill should be greater than what you are paying for the solar.
This means that if your electricity bill is always super high it will be worth renting a Tesla solar.
For instance, if let’s say your electricity bill is $200/month, and you install the Tesla solar that you will be paying $100/month, this means that you will be saving $100/month.
This is just an example to help you get a rough idea of the importance of doing the calculations.
I recommend going through your annual electricity bill because some months will have lower electricity bills compared to others.
Before leasing the Tesla solar, I did the calculations for my yearly kWh usage and found that leasing was more cost-effective because the rental fee was half my yearly electricity bill.
However, this may not be the case for some people, especially if your utility company is cheaper and you do not consume a lot of electricity in your household.
Renting a Tesla solar will be worth it if your electricity bill is greater than the Tesla solar rental price.
2. Your location
Renting Tesla solar is so much worth it if you live in a location that gets maximum sunlight throughout the day.
Additionally, if your roof is clear of obstacles such as large trees, the amount of energy generated by solar panels will not be affected.
It is worth leasing a Tesla solar if you live in an area that receives more hours of sunshine.
3. Your utility company
If you not planning to get a Tesla Powerwall to save the energy produced by the solar panels, I recommend finding out if your utility company has Net Metering.
You can save more when renting Tesla solar through Net Metering. Net Metering can lower your electricity bill, and could even end up making your monthly electric bills=$0.
|What’s net metering?|
This is when the electric company buys the excess energy generated by your solar panels which you never get to use.
However, you should note that net metering only makes leasing solar panels worth it if you have excess energy to sell to the utility company.
For instance, let’s assume you have excess energy that you did not use but also used some energy from the grid during the month.
If the electricity company pays you $60 for the excess energy and the energy you used from the grid costs you $130, this means that you will end up paying $70 ($130 – $60).
Renting Tesla solar will be worth it if your utility company has Net Metering because you may end up paying less in monthly electricity bills.
4. The duration you plan to stay in that house
Renting Tesla solar may be better than buying one if you don’t plan to live in that house for the long term.
This is because there are no contracts. You are just charged the removal fee. This gives you the freedom to move out when you need to.
So, if you are not sure that you will be in the house longer than 4 years, then you can rent the solar for the period that you know you will be there.
Why is this important?
- Buying a solar panel may have a long payback period
In my first house, I rented a Tesla solar because had I bought the Tesla solar, it would have taken me a payback period of 8 years and I was only going to live in that house for not more than 4 years.
But how about if you plan to move out in 10 years’ time? How much will you have saved if you choose to rent vs. buy a Tesla solar?
Assuming you do your calculations for the ten years and find that when you buy you end up saving about $30,000 overtime and save $11,000 when you rent.
Your decision will be based on the difference.
- Adding solar panels to your house may sometimes make it hard to sell it.
For example, if you live in an expensive home, buying solar panels could make the house even more expensive, thus making it hard to sell.
If you decide to lease Tesla solar panel, Tesla makes it easy for you to transfer the lease to the new owner.
So, I highly recommend keeping the electricity bills for that leasing period so that you can use them to show a potential buyer how much they will be saving on electricity bills.
5. It depends on whether you want to buy time
Most people rent Tesla solar just to buy time as they wait for the solar panels to eventually get cheaper and more efficient.
This would be a great idea. However, you could end up waiting for several years for that to happen.
Renting is also a good idea before you buy because it allows you to test whether the solar will be worth it if you eventually end up buying it.
Why leasing Tesla Solar may not be worth it
1. If your roof isn’t new or may soon need to be replaced.
Leasing a Tesla solar may not be worth it if you’re installing it on an old roof that will soon need to be replaced.
This is because, after you install the Tesla solar on that roof when the time comes to replace the roof before the end of your renting period, it will add an extra cost to you.
You will hence need to have the solar panel removed and then reinstalled back after replacing your roof at a cost.
|I’d recommend that you inspect your roof or have a professional come and inspect the condition of the roof before installing the panels.|
If the roof will need to be replaced, then have it replaced first before renting the solar panels.
Note, it might be more costly for some people than others to have the roof replaced and the solar panels removed, and then reinstalled back.
So, do your homework to know how much it will cost you and determine whether renting the solar will be worth it or not.
2. If financing Tesla solar will be much cheaper than leasing
If you will be paying less in monthly payments to finance the tesla solar panels, renting the solar panels may not be worth it.
Additionally, the fact that you will eventually get to own the panels and will no longer need to pay monthly payments for the solar panels, makes renting even less worth it.