Solar Lease / PPA
A financing arrangement where a third party owns the solar system on your roof and you pay a monthly lease or per-kWh power purchase rate.
Quick answer
Solar Lease / PPA: A financing arrangement where a third party owns the solar system on your roof and you pay a monthly lease or per-kWh power purchase rate. Typical cost: $0 down, $80–$200/month or $0.10–$0.18/kWh; 20–25 year term..
Why it matters
Leases provide no-money-down solar but forfeit the 30% tax credit and can complicate home sales — 60% of solar buyers now choose ownership.
Typical cost
$0 down, $80–$200/month or $0.10–$0.18/kWh; 20–25 year term.
Pros
- • No upfront cost
- • Provider handles maintenance
Cons
- • No tax credit
- • Escalator clauses raise payments yearly
- • Buyer must assume lease at home sale
Common uses
- • Homeowners with no tax appetite or cash
- • Renters of property they expect to sell
Alternatives
Cash purchaseSolar loan
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Frequently asked questions
- Does a solar lease hurt resale?
- Often yes — some buyers walk away rather than assume a 15+ year remaining term.
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