Leasing Solar Panels
Everything you need to know about solar panel leasing and power purchase agreements
Considering Solar Panels but Worried About the Cost?
Switching to solar energy has both environmental and financial benefits, but the upfront cost of installation can be a major concern. Fortunately, solar leasing offers a way to enjoy solar power without large initial expenses. In some cases, you can even install solar panels with zero upfront payment, simply replacing your monthly electricity bill with a fixed solar lease payment.
Affordable Solar Panel Options
Solar Leasing
Pay a fixed monthly amount to use the solar equipment.
Features
- No upfront costs
- Fixed monthly payments
- Provider handles maintenance
- Protection from rising energy costs
Drawbacks
- No ownership of panels
- No net metering benefits
- Limited availability by state
Power Purchase Agreements (PPA)
Pay only for the power your system generates, with the option to buy later.
Features
- Zero upfront cost
- Pay per kilowatt-hour (kWh)
- Option to purchase later
- Provider maintains system
Drawbacks
- Rates may increase over time
- Not available in all states
- Long-term commitment required
How Does Solar Panel Leasing Work?
A solar lease is a hassle-free way to access renewable energy. In this setup, a solar provider installs and maintains the system on your roof, and you make fixed monthly payments—similar to leasing a car.
Solar Lease Process
Sign Agreement
Sign an agreement with a solar company (often with $0 down).
Installation
The provider installs and maintains the system on your home.
Monthly Payments
Pay a fixed monthly rate, often similar to your old electricity bill.
Rate Adjustments
Small annual rate increases (typically 1%-5%) to adjust for inflation.
End of Lease
Options to renew, upgrade, or remove the system.
Key Terms in a Solar Lease Agreement
Down Payment
Most leases require zero upfront cost.
Monthly Payments
Fixed payments that may increase slightly each year.
Rate Increase Cap
Protects you from sharp price hikes (typically 1%-5% per year).
Lease Term
Usually 20-30 years, matching the system's lifespan.
End of Lease Options
Renew, upgrade, or remove the system.
Home Sale
Lease can be transferred to the new homeowner.
💡 Important: Standard solar leases do not allow you to purchase the system at the end of the contract. If you're interested in ownership, consider a PPA instead.
Find a Trusted Solar Provider
To determine whether a solar lease or PPA is the right fit for your home, compare quotes from certified solar professionals in your area.
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