What Is The Difference Between A Solar Lease And Ppa

Solar ppa and leases are generally better for people with credit challenges or cannot take advantage of the solar investment tax credit itc.

What is the difference between a solar lease and ppa.

Both solar leases and solar ppas are very similar making it hard to tell the difference between the two. What s the difference between a solar lease and ppa. With a lease you pay a fixed monthly rent in return for use of the system. It s a subtle but significant difference whereas the solar lease is an equipment rental and performance agreement versus the solar ppa which is an energy contract where homeowners are paying for the exact kilowatt hours kwh the system produced the previous month.

With a solar lease you agree to pay a fixed monthly rent or lease payment which is calculated using the estimated amount of electricity the system will produce in. While the terms solar lease and solar ppa are used interchangeably on this page and are very similar in practice there is a key difference between the two. With a ppa you pay a fixed price per kwh for power generated. We ll help you decide which option is best for you.

Solar leases and solar power purchase agreements ppas are two kinds of solar financing options that make it easy to install a solar system on your roof. In this blog we break down how exactly these financing options are different and which one might be the best choice for you. The difference between a solar lease and solar ppa is simple. The difference between a solar lease and a solar ppa power purchase agreement is explained in this article.