Solar Leases - The Fundamentals

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July 24, 2018


Solar Lease Fundamentals

What Are Solar Leases?:

Solar leases are sold by many solar installers1 and are either called solar leases or power purchase agreements (PPAs). They provide them to customers as an easy way for customers to cut the costs on their electric bill. These systems are great for individuals who are interested in a low-cost, low-maintenance option that will help install a solar energy system in their homes.

Solar leases are also friendlier for the environment2 as they are able to use solar energy to provide electricity to people's homes rather than older, more traditional methods of providing electricity to populations.

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What Are the Perks Of Solar Leases?

When a customer signs a solar lease, they will find a variety of benefits that entice them to keep the solar contract going moving forward. Some of the following are perks to signing a solar lease for the customer:

  • many are 0% down agreements (be sure to understand if you will have to pay up front or put down a deposit)
  • 10-30% savings on your monthly electricity bill each month
  • you may be eligible for tax credits or other financial incentives for using "greener" sources of energy

The added perks that the customer receives will continue to motivate more customers to use more and more people to be interested in expanding the use of solar energy to the electricity they use in their own homes.

How Do Solar Leases Work?

Solar leases allow residents of homes to rent solar equipment such as the solar panels to help bring greener energy into their homes. Leasing solar panels is similar to leasing anything else such as a car. These programs are often referred to as solar financing, solar purchase agreements, or solar rental programs.

The real question is how do people go about getting this leased equipment into their homes so that they can benefit from the "greener" energy solar panels have to offer?

Steps To Getting A Solar Lease For Your Home:

People who are interested in getting solar equipment put into their home and participating in a solar lease can use the following as some of the steps to help them get started:

  1. You will need to contact a solar leasing program provider to get information on getting solar equipment installed in your home.
  2. The company will come out to your home to see if you qualify for a solar lease. They will also evaluate the qualities of your home such as your home's exposure to sunlight, the slope of your roof, etc. to see where the equipment might fit on your property.
  3. If they determine that you are eligible for a lease on solar equipment they will go ahead and help make an appointment to have such equipment installed on your property.
  4. Many installation companies will provide the equipment for 10-20 years on one lease. While some companies may charge a down payment to equip your home with these solar tools others will do it for 0% down from the start. (Many companies give these system installations to customers for FREE as an incentive to encourage people to try "greener" energy. Others will even provide free removal of the equipment and re-installation if you are to move within the life of that agreement.).
  5. The company that provides the equipment will be the ones that collect the benefits of electricity bills and your tax breaks as returned revenue (although you don't have to pay the extra on the electric bill up front so you do save money, too).
  6. Maintenance and warranties are covered for the life of the equipment if things needs fixed or worked on throughout the life of the agreement.

While the company that provides the equipment will receive the savings from the electric companies and the tax breaks, you will save money by paying less on your electric bill throughout the time you have the equipment in your home. Moreover, the rates you pay for electric energy are generally locked in through the life of the loan so you are protected against any energy price increases. This is where you can really save and benefit from having a solar panel installed in your home.

Moreover, you know that you are doing the right thing by providing your home clean and reusable energy that is better for the planet and other people around you.

Where Are These Solar Leases Available?

Solar leases are generally available in any state that have great solar incentives for people to use this energy to help protect the environment. Some of the top states where these incentives are the most readily available include Arizona, California, Colorado, Massachusetts, New Jersey, and Pennsylvania.

Programs are also currently being put in place in Texas and Florida and should be available to the public in the near future.

Where Can I Find Someone To Provide Me With A Solar Lease For My Home?

Trying national-level companies that offer these leases throughout the entire US to see where they offer deals near you. Some of the most recommended programs to get these leases through include SunRun, SunPower, and PowerCity just to name a few.

Many local providers and electric companies will be able to provide you with more information about getting a solar lease for your home as well. Many  companies will even be happy to come provide free estimates for prospective customers about what benefits these solar leases could provide them and provide estimates on exactly how much you could save as a prospective customer if you got a lease through them or another local provider.

Moreover, remember that soon as you install this new solar equipment in your home you will reap the benefits of lower electric bills and possibly tax cuts almost right away. You are doing the right thing for the environment and you are saving your pocketbook some added expenses as well.

For more information on getting a solar lease for your home while bettering the environment and saving money on your electric cost please feel free to contact us.

1. https://www.energysage.com/solar/financing/solar-leases-and-solar-ppas/
2. https://www.consumerreports.org/energy-saving/real-cost-of-leasing-vs-buying-solar-panels/


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