Solar power generation leasing investment

What is a solar lease?

You can think of a solar lease like a car lease – it’s a form of third-party ownership (TPO) where you don’t own the product that you’re paying for. Under a solar lease, this third-party owner (e.g., a solar company) installs solar panels on your property and then sells you the electricity produced at a predetermined monthly rate.

Can you sell a solar system under a lease?

Under a solar lease, you won't own your solar system, but will still benefit from its generated electricity. A leased solar system can make selling your home more difficult because the next owner may not want to take over your lease payments. What is a solar lease?

What are the advantages of a solar lease?

The three main advantages of a solar lease are: Saving money on electricity: With a solar lease, you'll save on electricity costs throughout your agreement. Low or no upfront costs: Unlike a cash purchase, solar leasing setups allow you to go solar without paying much (if any) money upfront.

How does solar leasing work?

Under this agreement, you make monthly lease payments and get full access to all solar power generated, which helps lower your utility bills. Solar leasing works best for homeowners who can’t afford the high upfront costs of purchasing solar panels or the responsibility of ongoing maintenance.

Are solar leases worth it?

Solar leases are a common way to cover the costs of installing a solar energy system, but they also come with some very real downsides that are important to understand. Leases can cause more trouble than they’re worth, so it's essential to conduct research before signing any contract.

How do Solar Lease companies make money?

All the solar lease providers listed make their money by financing a solar system for your home and then selling you the solar electricity from the panels. In most cases, the companies promise you will save money on your power bills in the first year – a win-win situation.