Have you thought about going green? Here are some interesting facts you may want to consider prior to making your decision.

1. a division of
Buying vs. Leasing
Presented by:

2. To Lease or to Own, That is the Question
 Homeowners that choose to purchase and own their system:
 Are entitled to receive rebates and incentives reserved by the
government
Under the American Recovery and Reinvestment Act of 2009 homeowners are eligible for a
federal personal income tax credit up to 30% of the purchase cost of their renewable energy
system, without a maximum limit.¹
 Are sheltered from rising utility costs which escalate on average of
3% each year
 Reduce their reliance on third party utility companies and
independently produce clean energy
 Homeowners that choose to lease their system:
 May save money each month on electricity
 Produce clean energy
¹The information above should not be relied upon as tax or legal advice. Please consult your lawyer or tax preparer
regarding residential renewable energy tax credits.
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3. The Influence of Loan Programs
 Average system cost: $20,000 - $45,000
 Home equity loans are difficult to obtain
 Homeowners want the easiest option that provides them with the
lowest monthly payments
 Industry trends show the lease growing in popularity as a result
 The introduction of solar loan programs has greatly influenced
homeowners to purchase their systems across the United States. Let’s
explore why:
Lease
Admirals Alternatives Financing
Customer may be eligible for a federal tax credit
NO
YES
Customer may be eligible for a state tax credit
NO
YES
May gain asset value on home
NO
YES
Payments may decrease
NO
YES
Pre-payment penalties may apply
YES
NO
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4. Example of Homeowner Savings
 The graph below outlines the savings incurred by the homeowner as a
result of direct ownership through an Admirals Alternatives loan
compared to a lease.
$7,000
$6,000
$5,000
Utility Bill Savings
Admirals Bank
Payments
$4,000
Loan Payments net Tax
Deductions
$3,000
Lease payments and
subsequent utility costs
$2,000
$1,000
$1
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This graph assumes a 6kW system for a total cost of $27,000 with a utility rate of $0.26 and a 5% annual rate increase. Both
the loan and lease example assume a 20 year term and O&M is included within the loan payment. The 20 year net benefit of
the lease comes to $19,156 compared to a net benefit of $57,294 at the end of a 20 year loan term. This also assumes the
homeowner (or borrower) did not pay the loan off early.
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5. a division of
Thank you.
Please continue to the next tutorial to view an Admirals
Alternatives Relationship Manager walk you through
our online Energy Investment Calculator.