Solar Leasing for Residential Photovoltaic Systems ...
[Pages:6]Solar Leasing for Residential Photovoltaic Systems
Introduction
In the past year, the residential solar lease has received significant attention in the solar marketplace, primarily for its ability to leverage two key commercial tax credits for the individual homeowner. However, on January 1, 2009, the $2,000 cap on the residential investment tax credit (ITC) was lifted. As a result, the expansion of the solar lease model across the United States may be slower than anticipated. Homeowners may revisit the comparison between the solar lease and home-equity financing in light of the change to the ITC.
Market conditions have changed, however, and the solar lease provides some distinct advantages. Given the current financial crisis and the decline in home values, qualifying for a home equity loan is more difficult. Also, in response to the removal of the residential ITC cap, state and utility incentive programs have begun to lower their rebates for small photovoltaic systems ( ................
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