LEASES/PPA

Solar Lease vs. Solar Power Purchase Agreement (PPA)

Both a solar lease and a solar PPA let you go solar with little to no upfront cost—but they work differently.

🔹 Solar Lease (Pay for the Equipment)

With a solar lease, you:

• Pay a fixed monthly payment to use the solar system

• Pay the same amount every month, regardless of how much power it produces

• Do not own the system
  
  

Good for homeowners who want:

• Predictable, flat monthly payments

• Simple budgeting

• No maintenance responsibilities
  
  

🔹 Solar Power Purchase Agreement (PPA) (Pay for the Power)

With a solar PPA, you:

• Pay only for the electricity the system produces

• Are charged a per-kWh rate (usually lower than your utility)

• Payments can change month to month based on usage

• Do not own the system
  
  

Good for homeowners who want:

• To pay strictly for what they use

• Utility-like billing at a lower rate

• No system ownership or maintenance
  
  

💡 Simple analogy

• Solar lease = Leasing a car (same payment every month)

• Solar PPA = Paying for gas (pay only for what you use)
  
  

Bottom line

• Require little or no upfront cost

• Include maintenance and monitoring

• Can lower your monthly energy costs
  
  

The difference comes down to how you prefer to pay:

• Fixed payment → Solar Lease

• Pay-per-use → Solar PPA