How Does A Solar Panel Lease Work

Most lease providers provide the option to buy the panels at the end of the lease term at a discounted price.

How does a solar panel lease work.

You pay a fixed monthly payment to a solar installer but you do not own the solar panels. Savings vary from 5 25 on monthly electricity bills. Solar lease contracts are usually for 20 to 25 years. Essentially the solar leasing company is selling you power at a reduced rate generated from the newly installed solar panels.

Leasing solar panels works similarly to leasing a car. If you sign a ppa you commit to paying a fixed rate per kilowatt hour kwh for the electricity that your solar panels generate. If you sign a solar lease you pay a flat monthly rent to sunrun in exchange for electricity. The leasing company gets the rebates incentives and federal tax credit for the purchase of solar panels.

You lease the solar panels and receive all the energy they produce but do not own the panels. In fact selling a house with leased solar panels may drive down the sales price. Solar leasing is a lot like a lease on a car. A solar provider handles the installation and then leases the equipment to you at a fixed monthly amount or sells you the electricity the panels generate at a set price per kilowatt hour.

Your power rates with the leasing company are locked in for the life of the agreement. They can either buy out the remaining lease payments themselves or they can attempt to find a buyer who is willing to take over those solar lease payments. You make monthly payments for the panels and are entitled to all the electricity they produce. In return you get all of the solar energy the panels produce which cuts down your electric bill.

Like most other solar leasing companies sunrun leases and ppas are both typically 20 year agreements. Homeowners with leased solar panels who are trying to sell only have two options. A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. 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.

How much money can a solar roof save you in illinois. Some companies also offer power purchase agreements or ppas. Leasing solar equipment allows you to receive the financial benefits of solar energy without having to buy a home solar system. 1 over two to three decades average electric bill savings can amount to thousands of dollars.