Information released by the SEIA suggests that the average residential solar installation costs around $20,000 compared to $40,000 ten years ago.
Are you keen to get on board with solar but still can’t afford this reduced price? There are other ways to benefit from solar besides paying for the entire installation yourself.
Let’s compare the solar PPA vs lease options to help you find the best option for you.
What Is a Solar PPA vs Solar Lease?
Solar leases and solar PPAs are two solar financing options that make it easier to install solar panels on your roof. They’re very similar in many regards.
They work similarly to leasing a car. You get to use the solar panels on your home’s roof, but you don’t own them.
The major difference between the two is the monthly payment you make toward using electricity from the solar panels. According to Blue Raven Solar, a lease or PPA fee is always less than what you paid for your regular electricity bill.
This makes a solar PPA vs buying solar an attractive option for most homeowners.
Solar PPA vs Lease Savings
The main difference in a PPA vs solar lease arrangement is that you usually pay a fixed fee for a solar lease, while a PPA varies according to how much electricity you use.
With a solar PPA, you pay much less per kilowatt-hour than the usual fees charged by conventional power providers.
A solar lease payment works on a scale according to the cost of your usual electricity bill. For instance, if you pay $150 monthly for grid power, you’ll pay around $80 per month for your lease.
Your contract with the power company may last anywhere from 10 to 20 years, and you can expect your payment to escalate by three to five percent per year.
Of course, the major saving when you use solar power this way is on the installation costs.
Pros and Cons of Solar Leases and PPAs
These two solar financing options make solar more accessible for environmentally-conscious homeowners who can’t afford a solar installation. They’re a win-win situation for power providers, the environment, and your wallet.
You don’t pay a cent toward the installation or upkeep of the panels, and they don’t affect your lifestyle in any way.
The only drawback with these arrangements is that it’s sometimes difficult to sell your home if the prospective buyer doesn’t want to take over your lease.
If you can’t convince them otherwise, you’ll usually have to pay a fee to the solar company to cancel your agreement and remove the solar panels from the house.
Embrace a Brighter Future
If you want to save money while making a positive contribution toward environmental conservation, solar energy is the best option for you.
So, get in touch with your local solar power providers right away to compare your options for a solar PPA vs lease right now.
Would you like to discover more cost-saving tips or ways to live an eco-friendly lifestyle? Browse our blog for all the best information.