How do solar leases and solar PPAs work?
Solar PPAs and solar leases are very similar financial vehicles that give our clients the ability to rent your solar system. You enter into an installation contract with a solar installer that entitles you to use the energy that the solar panels generate for the term of the agreement, which is 20 or 25 years.
Under these agreements, the leasing company owns and maintains your solar panel system, so it is entitled to the rebates, tax breaks, and any other incentives that result from the installation of a solar panel system. Consumers can indirectly benefit from those savings through lower electricity rates.