An graphic about leasing solar panels for a house.

Leasing Solar Panels in Canada

Are you considering going solar in Canada but unsure about leasing solar panels? Don’t be concerned; you’re not alone. Many Canadians misunderstand leasing solar panels, which can keep them from benefiting from this ecologically benign and cost-effective energy source.

We’ll dispel some common myths and misconceptions about leasing solar panels in Canada in this article so you can decide whether it’s the right choice for you. We’ll cover everything from savings to sustainability and help you grasp the advantages of leasing solar panels. Let’s get started!

Misconception 1: Leasing Solar Panels is More Expensive than Purchasing Solar Panels.

People often think a solar lease is more expensive than buying solar panels. This is not true. Even though solar loans mean making monthly payments for the length of the solar lease, it’s crucial to consider the long-term costs and benefits of each choice.

Cost of Leased Solar Panels for Your Solar System

It includes the monthly lease payment, which depends on things like the size of the solar system, the length of the solar loan, and the amount of energy the panels produce. Maintenance, insurance, and monitoring fees are also costs to think about.

With a solar lease, on the other hand, you usually don’t have to worry about upfront costs or paying for repairs and replacements because the leasing company usually takes care of these things.

Leasing vs. Buying Solar Panels

When deciding whether to purchase solar panels or go for a solar lease, it’s essential to consider the initial and long-term costs. If you buy a home solar panel system or when you buy solar panels, they will require a high upfront cost, but you’ll own them and be able to use federal tax credits and incentives. On the other hand, leasing will cost less upfront, but you’ll have to make monthly payments for the leasing solar panels worth.

Example of Cost Comparison

Let’s look at an example of comparing the costs of buying solar panels versus solar leases or solar loans. If you purchased it outright, a 5 kW solar panel system could cost between $15,000 and $20,000. With a solar lease, on the other hand, you might pay as little as $0 upfront and $100 to $150 per month, depending on the lease terms.

Over the term of the solar loan, you may pay more than buying solar panels outright, but you’ll have peace of mind knowing that solar leasing companies will take care of maintenance and repairs.

Misconception 2: Leasing Solar Panels is Hard and Needs Maintenance.

People also often think solar leasing is complex and requires a lot of upkeep. But the truth is that a solar loan is easy, and they usually don’t need much upkeep.

How Solar Leasing Works?

When you opt for solar leasing, you are renting them. The solar leasing company will set up your home solar system and monitor them to ensure they are working right. Then, you’ll pay a monthly rental fee to use the new solar system. At the end of the lease, you can continue with solar leases, have the panels taken away, or buy them directly.

Maintenance Requirements for Leased and Purchased Solar Panels

Whether purchasing solar panels or opting for a solar lease, you must keep them clean and dirt-free to get the most out of your solar power system. But if you are on a solar lease, the solar company will usually take care of any necessary repairs or replacements. If you buy, you’ll have to pay for upfront costs. In the end, maintenance costs shouldn’t be a big deal when choosing whether to buy solar panels vs. a solar loan.

 Misconception 3: Only Homeowners with Perfect Roofs can Lease Solar Panels.

Many people think that homeowners with perfect roofs are the only ones who can lease solar panels, but this is not always the case. Solar panels can be put on many different roofs, such as flat, sloped, metal, and tile roofs.

Leasing Solar Panels for Different Types of Roofs

When buying solar panels, different types of roofs may have different needs. For instance, a flat roof might need ballast systems to keep the panels in place, while a sloped roof might need more hooks and supports. But leasing companies have a lot of experience putting solar systems on all kinds of roofs to offer options for any roof type.

How do Solar Panel Leasing Companies Decide if a Roof is Right for Solar Panels?

A solar panel provider usually looks at things like the age and state of the roof, its orientation and angle, and whether or not trees or nearby buildings could block the sun. They may also check the solar power installation to ensure the solar panels will work with it.

Based on this evaluation, the company can decide if it is possible to put solar panels on the roof and give an idea of how much the lease will cost.

Misconception 4: Solar Panel Leasing is Only for Warm, Sunny Places.

Many Canadians think you can only rent solar panels if you live in a warm, sunny place. But this is just not the case. Even though solar panels produce more solar energy in areas with a lot of sunlight, they can still be used in cold and cloudy places.

Solar Panel Leasing and Performance in Different Climates

When it comes to leasing solar panels, how well they work in different areas is an important thing to think about. Solar panels can still make power in cold and cloudy places, but they will make less energy than in places that are warmer and have more sun.

But many Canadian homes, even in colder and cloudier places, can still save money by leasing solar panels. This is because solar panel leasing companies consider things like climate and weather trends when figuring out how much energy a solar panel system could make.

Misconception 5: Solar Panel Leasing Is a Scam and Isn’t Worth the Investment

Solar panel leasing is frequently misunderstood and even regarded as a scam or a waste of money. This misunderstanding may stem from a misunderstanding of how solar panel leasing works and the benefits it can provide. Solar panel leasing is a viable and cost-effective solution for homeowners that want to go solar but don’t want to pay for solar panels upfront costs.

The Legality of Solar Panel Leasing

Recognizing that solar panel leasing is a legal and regulated sector in Canada is critical. Leasing firms must adhere to federal and provincial standards to be transparent, dependable, and deliver excellent service. These restrictions safeguard customers while ensuring solar panel leasing companies meet specific criteria.

Solar Panel Leasing vs. Other Investments

Solar panel leasing can be a wise financial decision for homeowners compared to alternative renewable energy investments. While the expenses of purchasing and installing solar panels might be substantial, leasing allows homes to receive solar electricity without incurring these costs. This can be especially useful for those who cannot afford to buy solar panels directly.

Furthermore, solar panel leasing offers a fixed monthly energy cost that is more predictable than the fluctuating costs of typical electricity bills. Finally, solar panel leasing can raise the value of a home and may qualify for certain tax credits and incentives, lowering the overall cost of adopting solar.

Misconception 6: Leasing Solar Panels Doesn’t Provide a Return on Investment

Many individuals dismiss solar panel leasing as a terrible investment because they believe it does not deliver a return on investment. This, however, is a prevalent misperception. Solar panel leasing can be a very beneficial investment for Canadian households. It is critical to understand how solar panel leasing works and how it might deliver a return on investment.

How Solar Panel Leasing Generates a Return on Investment?

Solar panel leasing delivers a return on investment by lowering your electricity expenses. When you lease solar panels, you pay a monthly cost for their use. This charge is frequently less than what you would spend on your local utility company for electricity.

As a result, your monthly electric bill is reduced. These savings might add up to a large sum of money over time. Furthermore, several solar panel leasing companies provide maintenance and repair services, allowing you to save even more money on your energy bills.

Factors Influencing Your Solar Savings

Several factors affect how much money you can save with solar panel leasing. These factors include the amount of sunlight that hits your roof, the size of the solar panel installation, and the electricity costs in your area. Leasing solar panels can save Canadian homeowners up to 30% of their monthly electricity expenditures. This value, however, may change depending on the exact circumstances of your home and area.

Solar Panel Leasing vs. Other Investment Opportunities

When comparing solar panel leasing to other investment alternatives, it is critical to consider the long-term savings that solar panels can provide. While the initial costs of owning a solar panel system might be costly, leasing solar panels is more cost-effective for households looking to lower their energy bills and carbon footprint.

Furthermore, solar panel leasing offers a fixed monthly cost, which can assist homeowners in budgeting more effectively. Overall, solar panel leasing is a wise option for Canadian homeowners who want to save money on their energy costs while also helping the environment.

Leasing vs. Power Purchase Agreement (PPA)

Leasing and PPAs are popular solar energy financing solutions. Both alternatives allow households to go solar without upfront fees, but they differ.

Solar leases require homeowners to pay a monthly fee for using their solar panels. In a power purchase agreement (PPA), the homeowner agrees to buy solar panel energy at a set price.

What distinguishes a lease from a PPA? Ownership of solar panels differs. Under a PPA, a third party owns the solar panels and sells electricity to the homeowner, while under a lease, the leasing company owns them.

Leasing vs. Buying Solar Panels: Costs & Tips – House Method

Leasing and buying are your solar alternatives. Before choosing, consider the cost and tips. Both solutions have pros and cons.

Leasing solar panels lets households enjoy solar energy without paying for the installation. The solar company leases the panels to families. However, owning solar panels gives homes all the benefits and savings.

Consider money, energy needs, and long-term goals when choosing an option. To get the best deal, compare offers from different solar companies.

Tax Credits and Incentives on Solar Leases

Solar energy has environmental and financial benefits. The Canadian government offers tax credits and incentives to promote solar energy.

The federal tax credit (ITC) lets homeowners deduct 26% of the cost of their solar system from their taxes. Some provinces give rebates and grants.

Working with a professional solar firm can help you navigate the complex process of applying for and getting these incentives.

Many think solar panel leasing is terrible because it doesn’t return the money. It’s a frequent misconception. Canadian homeowners can profit from solar panel leasing.


In conclusion, leasing solar panels is an excellent choice for homeowners who want to use solar energy without breaking the bank. Leasing may power your home cheaply and sustainably, despite myths. Debunking these myths and presenting the correct facts should help you decide about solar panel leasing.

Research and talk to a reliable business if you’re considering leasing solar panels. Solar energy reduces energy expenses and helps Canada and the world become more sustainable. Why not switch to solar energy today and experience its benefits?


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