A prepaid solar lease/PPA is very similar to purchasing your solar panel system. In a pre-paid solar lease/PPA, you pay 100% up front when you sign the contract and do not have to pay anything for the duration of the agreement. Because you pre-pay, the TPO assumes no risk, and they are generally willing to make adjustments to the lease/PPA terms that are favorable to you.
The solar leasing company owns the system in a prepaid lease, but the lease amount will be similar to the purchase price of the system, including rebates, tax credits, and incentives. The leasing company is usually willing to allow you to benefit from the sale of any available Solar Renewable Energy Credits (SRECs).
- Total price is 30-50% lower than what you would have paid if you bought the system
- Prepaid solar leases can increase your home’s value in the event of a sale
- Don’t have to claim tax credit, it will be deducted off the top, so your monthly payments (if financed) will be lower starting month one going solar.
- Requires an investment in the range of $5,000 to $20,000+, depending on where you live and the size and quality of your solar system you’ve decided to set up.