Solar power offers many benefits and every homeowner has a different reason to switch to solar energy. It could be to reduce utility bills, reduce their carbon footprint, enjoy an uninterrupted power supply, or something else. No matter what their reasons, they all enjoy huge cost savings. However, the setup costs of residential solar installations generally range between $15,000 and $50,000, depending on the market. This can seem challenging to some homeowners.
In such cases, homeowners can still switch to solar power using one of the many convenient financing options. One of the savvy solar financing options is a solar lease. We explore this popular solar financing option here.
How Does a Solar Lease Work?
Like a solar loan and PPA, a solar lease is a solar financing option available to homeowners in Austin, Tx. Under a solar lease, homeowners pay a monthly rent to their leasing company.
The homeowners do not own the solar panels as part of the solar lease. They borrow it from the leasing company. So, they are normally not eligible for any solar incentives. On the flip side, homeowners do not have to worry about maintaining solar panels in any way. The leasing company is completely responsible for the upkeep of the solar power system.
Solar Lease Vs. PPA
If you want a convenient and low-maintenance alternative to reducing your electric bill, then a solar lease and PPA (power purchase agreement) would make a great option. While there are a lot of similarities between the two, solar leases and PPAs are distinct solar financing options.
With a solar lease, the homeowner pays a fixed monthly rent to the solar company. However, in the case of a PPA, the payment amount is calculated based on the estimated power generated by your solar power system over a term.
With a solar PPA, you essentially agree to purchase power generated by the solar system at a predetermined rate. So during the summer months, when the electricity production is higher, people with PPAs may pay a higher rental for their solar power system whereas in the winter the amount could be much lower.
Ask an Expert
Solar lease offers numerous benefits like a $0 down payment, hassle-free installation, worry-free repairs, and free lifetime maintenance. An expert like Green Power Energy can take into consideration your household’s unique needs and suggest the right financing option for you. The process of installations may be the same, but the needs of each of our clients are unique. We are sensitive to the financial situations of all our clients and so work hard to go over all their financing options.