What's a Solar Lease?
A Solar Lease enables you to purchase solar electricity WITHOUT actually purchasing a solar system. With a Solar Lease or PPA (power purchase agreement) a Solar Provider installs and owns the solar system, issues a guarantee and insurance, and furnishes any maintenance required over the length of the lease. A lease typically runs 15-20 years. A solar lease empowers your home to produce clean electricity while reducing your dependence on the local utility company. Many companies have lease options that require no money upfront, typically referred to as a “$0 Down Solar Lease”. Once the solar panels are installed on your roof and interconnected with the utility, your home will produce clean electricity that you purchase through a monthly lease payment. Those monthly payments are designed to be LESS than the payments you make to your utility. PG&E is one utility that uses an escalating Tier system to set electricity rates for customers. The more electricity your home consumes, the quicker PG&E pushes you through Tiers 2, 3 and 4. The result is a monthly bill that grows exponentially. Investing in a solar lease to offset the most expensive tiers on your monthly bill often results in the most net savings.
- Suppose right now you have an average monthly PG&E electric bill of $300
- You invest in a solar lease that's designed to offset your electricity usage in PG&E Tiers 3 and 4
- Your home is now solar powered and your electric bill is reduced from $300 to $40 (Tiers 1 and 2)
- That's an initial savings of $260 per month
- Your monthly solar lease payment is $140
- That's a Net Savings of $120 a month!