Leasing solar panels to heat your house?

Want to incorporate solar technology to heat your home, but can't afford the steep investment costs? You're in luck. Let the solar panel company finance it for you.

Installing solar panels is a smart, not to mention, eco-friendly way to heat your home. However, buying them may be too pricey for the average consumer. They cost roughly $25,000 ... and that includes a potential 30-percent tax credit.

For a few years now, companies have been leasing solar panels to homeowners. The consumer pays a $1000 deposit, and then follows through with a monthly fee. The lease for the solar panels lasts 18 years, according to an article in the Christian Science Monitor. If you decide to sell your home before your solar panel lease is up, you can sell your excess back to the company.

The pros? There's no installation charge. According to an article in the Boston Globe, there's viable proof that a homeowner can earn back the investment in three years.

The cons? The company, not the homeowner, receives the tax benefits of owning the solar panels. If you have white winters, you will have to remove the snow from your leased panels.

And, the obvious trade-off, is that you won't save as much money as you would if you paid for them outright.

New consumer emerges in economic downturn

Today's tough economy has created a new consumer.

The U.S. consumer of 2009 has adopted new behaviors. The U.S. Commerce Dept reports that consumer spending in December was down for the sixth month in a row. The month's consumer spending is down 1%, while income is down only .2%. Energy prices are at an all time low, leaving cash in everyone's pockets.
What does this mean? More savings. This is due to the rising risk of unemployment, cut in hours and the decrease in home prices. The risks and uncertainties of today's economy are prompting Americans to hold on to their money. Historically low interest rates are enabling many to refinance their home. The Christian Science Monitor reports that Beth Byrne, a Boston-area resident, saves around $200 a month from a home refinance. She isn't planning on spending this money soon, either. The money is staying in the bank.

When is the U.S. consumer of 2009 going to rebound? Many economists feel the end of 2009 will boast a trend of increased spending, however, there is high uncertainty. A Diageo/Hotline poll in late January reveals 43% of Americans believe it will take between 2-4 years in order to get the economy back on track. President Obama agrees that the economy will take years to restore.

A rise in consumer confidence will ultimately increase spending. Tax cuts proposed by a stimulus plan in Congress will ultimately help reduce the decline in employment, and anything in place to help stop the decline in home prices will restore consumer confidence. Bank recovery policies that anticipate an end in the economic recession will increase investor's sentiment, thus increasing consumer confidence as well.