Solar panels: How can households invest in solar power for their homes? | Personal Finance | Finance

However, unlike buying solar panels or using a payment plan toward the purchase of solar panels, leasing will mean that the customer will not own them.

Mr Thorshiem explained: “Solar leases are a form of third-party ownership. Under a solar lease, the third party installs solar panels on your property and then sells you the electricity produced.

“Your monthly lease payment is based on the estimated annual production of your solar system. At the end of the leasing period, 20 years, the panels belong to the homeowner.

“The panels have a life expectancy of 30 years, which means the power produced in the last ten years will be free of charge.”

The advantages of leasing solar panels include the low or no upfront cost, meaning people don’t have to buy the panels and other equipment upfront.

Mr Thorshiem said: “If you are worried about maintenance, this can be a great alternative due to there being no maintenance responsibilities – the solar company will monitor the system and arrange for any necessary maintenance and insurance.

“You will also notice an improved EPC rating (Energy Performance Certificate), which can make your home easier to sell in the long term.”