Solar financing options can be different for every family and business owner looking to purchase solar panels. If you are looking for a simple and low maintenance option to install solar panels on your home or install solar panels on your business, then choosing to lease solar panels may be the best option for you. Solar leases and solar PPA are financing options where the homeowner doesn’t own the solar energy installation on their roof. Rather, the solar energy installation is owned by the lease or PPA company.
Are Solar Leases A Better Option?
Choosing a solar lease means that the homeowner or business owner leases the solar panels and parts that go along with solar panel installation. For the duration of the lease, the homeowner pays a flat leasing fee that increases every year by a certain percentage and additionally the left-over utility bill.
Are Solar PPA’s A Better Option?
Choosing a solar PPA (purchase power agreement) agreement means you neither own nor lease the solar energy system. Instead, the PPA company installs their own solar energy system on the homeowner or business owners’ roof and once installed sells the electricity the solar panels produce at an amount that is agreed upon. However, depending on the plan that is chosen the homeowner or business owner initially pays some money down. Following paying this money down you either have a fixed monthly rate or just pay for the electricity that is used.
What is the main difference between solar leases and solar PPA’s?
With a solar lease, the individual agrees to pay a fixed monthly rate to rent the solar panels. This can be calculated using the estimated monthly electricity the solar energy system produces. A solar PPA means the individual agrees to pay at a set per-KWH price and you are NOT renting the solar energy system.
The best way to discover which option saves you the most money is by getting a free solar quote on your home or business with our solar energy experts. At Sunlogix Energy our goal is to educate our customers on the economic and environmental benefits of solar energy.