You completely purchase and own the system plain and simple. The benefits of owning the system are that you receive a 30% Federal Tax credit for the first year, along with any other state solar energy credits available. You also are entitled to SRECs ( Sustainable Renewable Energy Credits). The energy that the system produces that is not used by you will be fed back to the grid and you will receive credit for it. Any credits for excess production are banked for future months usage, the excess at the end of the billing period is paid to you by the power company.
Your leasing the system, you enter into a agreement for a period of time in which the system is installed and generating electricity on your property. This is usually a period of either 15, 20 or 25 years. You agree to purchase the electricity the system produces for that period of time at a predetermined amount. You are not entitled to any federal tax credits or state energy credits that are available. Any electricity that the system produces and is feed back into the grid will be credited to the leasing company, they will also receive the SRECs (Sustainable Renewable Energy Credit) the system generates. A lease option gives you the ability to go green and secure a set price for your electricity and avoid the annual rate increases.
Recent reports have shown leasing to be a way of the past.
In the previous decade, solar energy loans and grants were scarce to find. With the advancement in technology and efficiency of solar technology, banks and companies find it highly profitable to cover the needed costs of a solar array. A customer of solar can choose to talk with their personal bank on acquiring a loan or apply for state grants, which with our help will be an easy process. We work directly with Somerset Trust and Loan to provide residential and commercial loans to our clients.
For More information on our solar loan services...
Denise Z. Ickes
Assistant Vice President -- Lending Operations Manager
Carol L. Tokar
Assistant Branch Manager