Solar Power Purchase Agreement Vs Lease

Many solar installers advertise solar leases or power purchase agreements solar ppas as an easy way to reduce your electricity bill.

Solar power purchase agreement vs lease.

Solar ppa solar lease vs. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. More power on the roof means more electric bill reduction and more savings. Depending on where you live you will have to either sign up for a solar lease or solar power purchase agreement ppa.

Both solar leases and solar ppas are very similar making it hard to tell the difference between the two. The main practical distinction between buying and leasing a solar pv system is in ownership. That s where a power purchase agreement ppa came in and began gaining traction in the solar industry. Solar leases and solar power purchase agreements ppas are two kinds of solar financing options that make it easy to install a solar system on your roof.

If renting is more appealing you can lease the system or enter a ppa power purchase agreement wherein you get a new rate of electricity kwh instead of the one the utility gives you more on this later. The installer will typically provide the panels. Solar leases mean a fixed monthly lease payment. Solar ppa and leases are generally better for people with credit challenges or cannot take advantage of the solar investment tax credit itc.

If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. If you are interested in a simple low maintenance option for installing a solar energy system on your home leasing solar panels is a good option for you. Non sunpower solar ppas and non sunpower leases often use economy panels 260 watts that when combined with the new building codes make it difficult to install high power systems on most roofs. You pay a fixed price per kwh for power generated by the system in most cases your monthly bill will rise or fall with the amount of power your system produces.

A solar ppa is a long term agreement between you and a solar provider and or installer to lease your roof in return for a lower energy bill. A solar system can either be purchased with cash outright or through a loan. Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. Are you considering a lease or ppa offer from sunrun.

The sunpower solar lease comes with sunpower solar panels the most powerful home solar panels available on the market today. Solar ppa updated june 21 2020. 5 minutes sunrun is one of the largest solar installation companies in the country and has partnerships with organizations like comcast major league baseball and costco the company primarily offers solar leases and power purchase agreements ppas to homeowners although there are also cash purchase and solar loan options.