Solar lease or solar PPA - which is the better option?
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?
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?
answered 2015-01-26 16:58:15 -0500
This post is a wiki. Anyone with karma >75 is welcome to improve it.
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.
Asked: 2014-12-31 13:14:34 -0500
Seen: 404 times
Last updated: Jan 26 '15