October 1, 2021, 2:55 pm | Read time: 8 minutes

The dream of owning a photovoltaic system can be realized for just a few thousand euros. This allows you to generate solar power on your own roof for about ten cents per kilowatt-hour. The installation company usually handles the planning, installation, commissioning, registration, and maintenance of the system. However, for a few years now, there has also been the option to lease a system. The generated electricity can be fed into the grid or used personally. At first glance, leasing appears to be the more expensive option. But is that really the case? myHOMEBOOK consulted experts to find out the respective advantages and disadvantages of renting or buying a solar system.

What are the advantages of renting a solar system?

If you don’t want to invest yourself, you can also lease a photovoltaic system. “Since the lessor remains the owner of the system, they have an interest in installing high-quality, durable components,” explains Carsten Körnig, CEO of the German Solar Industry Association, in response to a myHOMEBOOK inquiry. He adds, “With leasing, you don’t need start-up capital; with buying, you immediately own the entire system.” Whether leasing is financially more attractive than purchasing cannot be answered generally and depends on the exact contract terms and the local situation. In many cases, it is more attractive for homeowners to leave a large part of the responsibility for acquiring and operating the system to a professional service provider.

For Zolar, an online provider of solar solutions, the lack of an initial investment is a significant factor for solar system rental. “Those who choose this model pay a fixed monthly rental rate that remains unchanged throughout the rental period,” a company spokesperson shares. The amount of the monthly rent depends on individual electricity consumption, the size of the rented PV system, and other factors such as the condition of the roof.

Solar power that is not consumed is fed into the public power grid. For this, the homeowner receives a feed-in tariff. Currently, according to Zolar, this is 7.36 cents (as of August 2021) per kilowatt-hour for PV systems with less than 30 kWp. The feed-in tariff remains unchanged for 20 years from the commissioning of the system. Any additional electricity needed comes from the conventional electricity provider.

What does the rent consist of?

According to Zolar, the total monthly electricity costs for a rented solar system consist of the following components:

• Monthly rental rate for the solar system
• plus costs for residual electricity from the energy supplier
• minus profit from the feed-in tariff for unused solar power

If owners decide to rent a solar system, the provider usually covers insurance, repair, and maintenance of the system. The provider also handles a large part of the planning when configuring the system. “Components with the best price-performance ratio are usually chosen to plan the solar system as efficiently and economically as possible for each individual,” explains Zolar.

Through reduced consumption of grid electricity and the monthly guaranteed feed-in tariff, rented solar systems can generate cost savings and protect consumers against rising electricity prices. Although purchasing a solar system recoups the invested amount in an average of eight to ten years, rental models offer immediate savings compared to grid electricity.

What are the disadvantages of the rental model?

“Initially, the higher price seems disadvantageous,” explains the Zolar spokesperson. “But when you add the costs for maintenance, insurance, and the replacement of individual components to the purchase price, both models become closer in price.” Additionally, there is the possibility that the tenant can take over the system for a symbolic euro at the end of the lease term and continue to benefit from cheap solar power.

Also interesting: Is a solar system worthwhile in winter?

Renting a solar system–what options are there?

According to the German Solar Industry Association, roof leasing models have been around for about ten years. A classic leasing model is common. The system lessee pays a monthly amount and can then take over the PV system either for free or for a processing fee after usually 20 years.

So-called “contracting systems” make sense, especially for multi-family houses. Here, a service provider operates the PV system and sells the electricity to the residents of the house. In this case, the system does not become the property of the residents.

“Another model is roof rentals,” explains Körnig from the Solar Industry Association. “Here, the building owner rents the roof to the PV system operator.” The building owner receives rent for the roof space. The PV system operator feeds the electricity into the grid and receives the feed-in tariff.

What are the advantages of buying?

“Buying a solar system means freedom of choice and responsibility at the same time,” says the Zolar spokesperson. “In the planning process, buyers have the opportunity to plan the photovoltaic system individually according to their wishes and needs.” Those who own a PV system can decide for themselves which components should be installed on the roof. If desired, they can delve deeper into technical details and make informed decisions.

Another major advantage of buying a system: Homeowners can benefit from federal, state, and municipal funding programs for private solar solutions. These vary depending on the state and are limited in time and amount. Nevertheless, it is worth looking into the different funding programs, which can subsidize your photovoltaic solution with up to several thousand euros, depending on availability.

Also interesting: Generate electricity with a solar system on the balcony

What costs should you expect when buying?

Those who decide to buy a solar system need the appropriate budget. According to Zolar, an average solar system with 7 kWp costs around 9,000 euros without storage and 14,000 euros with storage. Whether and when maintenance should be carried out is up to the buyer. During the expected lifespan of the photovoltaic system of about 30 years, owners should also consider costs for replacing the storage and inverter.

Is an investment in solar energy worthwhile?

“An investment in solar energy is always worthwhile for climate protection, but usually also for your own wallet,” explains Körnig from the Solar Industry Association. Since the costs of a PV system have halved in the last ten years, the demand for photovoltaics has almost doubled last year compared to 2019, according to the Federal Network Agency. “We also expect a double-digit percentage increase this year,” shares the Solar Industry Association.

Zolar is also convinced that a solar system generates environmentally friendly and cheap electricity—whether in the rental model or as a purchase option. “Depending on how much electricity is needed and when, the purchase of a power storage unit is recommended,” says the company spokesperson. The legally fixed feed-in tariff brings additional profits through excess electricity. “However, this has continuously decreased in recent years, so a solar system is now mainly worthwhile due to a high self-consumption of solar power.”

For comparison: While a kilowatt-hour of solar power from your own house roof costs about 8 to 11 cents per kilowatt-hour, the costs for conventional grid electricity average 30.04 cents/kilowatt-hour (as of September 2021). “This makes solar power about a third cheaper than grid electricity,” explains the spokesperson.

Related: How long is solar power still worthwhile?

Note: Electricians specializing in solar technology can create a customized offer if interested. The association provides an overview of member companies on its website. Additionally, the NRW Energy Agency offers a PV calculator to determine if a system is worthwhile.

More on the topic

Photovoltaics Charge your electric car with solar power from your own roof

Self-consumption, feed-in, … When a Rooftop Solar Panel System Is Worthwhile

Tip: E-car drivers save twice

Those planning to purchase an e-car or already driving one can look forward to even more savings potential: Charging from the home PV system via a wall box allows for average expenses of only 1.44 euros for a 100-kilometer drive. The environmental aspect is also guaranteed when using an e-car and solar system. Electricity from public charging stations, as well as often home grid electricity, is not always 100 percent green. Charging your car with 100 percent renewable energy minimizes your emissions. Here you can find out in detail what apartment owners need to know about e-car charging stations.

Conclusion

Whether buying or renting—both solar system models have their advantages. For those who cannot or do not want to bear high investment costs but still want to benefit from the advantages of a solar system, solar system rental is an interesting model. The convenience of system rental is also undeniable for owners.

For those primarily looking for the greatest cost savings, buying a solar system offers clear advantages. Although high investment costs are initially necessary, the operator is independent after the purchase, can benefit from the advantages of their own photovoltaic system throughout its lifespan, and is not bound to monthly rental rates. Those who use federal, state, and municipal funding programs can further reduce the costs of the PV system.

Sources:
German Solar Industry Association
Zolar
Federal Network Agency