Home Solar Leases

• How do Home Solar Leases Work?
• What is a Solar Power Lease?

A solar lease functions similarly to a car lease or any other sort of equipment lease. A homeowner decides to switch to solar energy and contacts a solar service company. The solar service provider inspects the home and determines the system's size, placement, and predicted efficiency. The lease price paid by the homeowner is determined by the total cost of the equipment and the amount of power produced. The lease is typically set, but it may also include an escalator throughout the life of the contract to accommodate performance reduction as the solar system ages as well as inflation-related maintenance and system monitoring costs.

The solar service provider maintains the entire house solar power system at no extra charge for the duration of the lease. Solar service providers may utilize their own "in-house" teams for installation, servicing, maintenance, and monitoring, but they may also outsource part of these tasks.

Your local utility company will allow you to connect your photovoltaic system to the grid. Grid connection is required to offer electrical service when the residential solar system is unable to meet demand (for example, at night) as well as to allow excess electricity to be sold back to the utility (one of the ways the solar service provider generates money).

A Home Solar Lease is a financial arrangement that can significantly decrease or eliminate the upfront costs of installing a home solar power system on your property. It is a financial agreement in which a solar development business installs photovoltaic solar panels on the roof of an energy consumer's residence, usually for free. In turn, the homeowner agrees to pay the solar power business for the usage of the solar power equipment for a certain time period. The length of a home solar lease varies, but you should count on 20 to 25 years. A homeowner would typically have the opportunity to purchase the equipment at the end of the lease arrangement.

Essentially, the user pays a monthly charge that includes both energy prices and hardware lease payments. Depending on the area, this monthly rate could be 30% or more less than current energy expenses.

Home Solar Leases assist homeowners in overcoming some of the challenges associated with building a home solar energy system. There are no upfront fees, system maintenance issues, or concerns about design, permits, or installation. A homeowner can notice energy savings from the first day their home solar power system is turned on with a solar power lease.