The Hidden Costs of Going Green

In this day and age, everyone wants to do right by the environment and reduce their carbon footprint by going green, but, let’s be really honest, sometimes the cost of going green is more than the average homeowner can afford.  While some things are easy to do, like recycling, gardening, and using more environmentally conscious products around the home, others can have hidden costs associated with them.  For instance, installing solar panels on your home is a great way to lower your electrical bills on a month to month basis, and you could get some tax credit to reduce your federal tax liability in the year that the system was purchased.  But, what are the actual costs to the homeowner?

Purchasing solar panels outright is a huge expense and you need to weigh how long it will take for the monthly savings to cover the cost of the system.  In most cases, this will take years.  Also, you need to consider the fact that you will be responsible for any upkeep and maintenance of the system.  Some parts can cost as much as $2500, and need to be replaced more than once during the lifetime of the system.  Leasing solar panels is another way to go.  With a lease, you pay half to no money down and receive the same environmental benefits as purchasing.  If something goes wrong, the leasing company is responsible for the upkeep and maintenance.  However, you do not get the tax credit, the leasing company does.  Also, if you try to sell your home before the lease is up, you will need to ensure that the purchaser is eligible to take over the lease.  Additionally, make sure you read the fine print on your lease; some companies have hidden rates and fees that the homeowner may never even know about.  Going green is great but make sure you know what you are getting into upfront, or all those savings will be coming out of your pocket instead of going in.