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Solar lease vs. PPA: what's the difference?

AlyssaB

Administrator
Top Poster Of Month
Both let a homeowner or business go solar without buying the system, but they work differently.
With a solar lease, you pay a set monthly amount to use the equipment, no matter how much power it produces. With a power purchase agreement (PPA), you pay for the electricity the system actually generates, usually at a per-kWh rate set in the contract. In both cases a third party owns the system, and the contract term often runs 20 years or more.
We compared the two in more detail here: Do You Need a Solar Power Purchase Agreement or Solar Lease Template?
Have you chosen a lease or a PPA? What tipped the decision?
This is general information, not legal advice.
 

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