Solar Photovoltaic Power Generation Lease Rent

What is a solar lease?

Solar leases are very similar to power purchase agreements (PPAs). With both options, a solar developer installs and owns the solar panels on your roof. The two differ in how you pay for the solar energy. Solar lease payments are the same every month, whereas solar PPA payments are based on the amount of energy the panels actually produce.

Can I lease a solar energy system?

You can use all the electricity generated by the solar energy system, and your monthly power bill decreases as a result. Leasing typically follows these guidelines: The company that provides your lease is responsible for solar panel installation and will provide ongoing system maintenance.

How much does a solar lease cost?

When someone buys solar panels outright, they can enjoy energy savings – and can usually break even after around just eight years. Although people will still save this amount with a solar lease, they’ll also have to pay between $50 and $250 for the monthly fee.

Should you lease or buy solar panels?

First, it reduces a customer’s upfront costs to install panels, often to $0. Using a solar lease means the maintenance and liability to damaged panels rests on the solar company rather than the homeowner. However, because you do not own the panels, you miss out on incentives like local and federal tax credits.

How does a solar system lease work?

Here’s how it works. You enter an agreement with a solar company that installs and maintains your system, often for $0 down. Then, you make fixed monthly payments to lease your solar system from that company — very similar to how you finance a car.

How do Solar Lease companies make money?

All the solar lease providers listed make their money by financing a solar system for your home and then selling you the solar electricity from the panels. In most cases, the companies promise you will save money on your power bills in the first year – a win-win situation.