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Solar lease or solar PPA - which is the better option?

asked 2014-12-31 13:14:34 -0500

benz gravatar image

updated 2015-01-24 11:09:39 -0500

What is a better option for me - a solar lease or a solar PPA? One company is offering a lease and the other PPA. Assuming the monthly cost is the same, which should I choose and why?

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answered 2015-01-26 16:58:15 -0500

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updated 2015-01-26 16:58:15 -0500

energysage gravatar image

Hi benz,

Solar leases and PPAs are very similar, but have one key difference:

Under a solar lease, you will pay a set amount of money for your solar system every month - the amount you pay does not increase or decrease depending on the amount of power your solar system produces in a given month. With a solar PPA, on the other hand, you will only pay for the power that is produced.

For this reason, we recommend a PPA as a slightly better option than a lease if it is available to you.

You can read more about solar leases and PPAs in our Learn section: Solar leases and PPAs

Also don't forget to check into your solar loan options. Solar loans combine many of the benefits of a solar lease/PPA with the benefits of solar system ownership. Read about solar loans.

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Asked: 2014-12-31 13:14:34 -0500

Seen: 912 times

Last updated: Jan 26 '15