How Does A Solar Panel Lease Work

You lease the solar panels and receive all the energy they produce but do not own the panels.

How does a solar panel lease work.

A solar lease is a financing option for residential solar panels where the homeowner leases panels from a solar company. 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. 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. Solar lease contracts are usually for 20 to 25 years.

In return you get all of the solar energy the panels produce which cuts down your electric bill. In fact selling a house with leased solar panels may drive down the sales price. If you sign a ppa you commit to paying a fixed rate per kilowatt hour kwh for the electricity that your solar panels generate. You make monthly payments for the panels and are entitled to all the electricity they produce.

1 over two to three decades average electric bill savings can amount to thousands of dollars. Under solar leasing arrangements a solar financing and installation company agrees to install solar panels on a homeowner s rooftop normally for no money down and to make all the connections necessary to provide electrical power to the property. If you sign a solar lease you pay a flat monthly rent to sunrun in exchange for electricity. Some companies also offer power purchase agreements or ppas.

Leasing solar panels works similarly to leasing a car. Here s where it gets really good. Savings vary from 5 25 on monthly electricity bills. You pay a fixed monthly payment to a solar installer but you do not own the solar panels.

How much money can a solar roof save you in illinois. 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. The leasing company gets the rebates incentives and federal tax credit for the purchase of solar panels. Homeowners with leased solar panels who are trying to sell only have two options.

Solar leasing is a lot like a lease on a car. Like most other solar leasing companies sunrun leases and ppas are both typically 20 year agreements. Essentially the solar leasing company is selling you power at a reduced rate generated from the newly installed solar panels. Your power rates with the leasing company are locked in for the life of the agreement.