PPA, Lease, or Buy – See for Yourself!
If you are debating going with a portable solar unit, you need to ask yourself whether you want to go with a solar power purchase agreement (PPA), lease solar panels, or buy solar panels. Here’s a breakdown of why it is more cost effective to purchase a solar panel system instead of leasing one.

PV Solar Incentives

If you are a homeowner, you will be eligible for some incentives, but they vary greatly based on where you live and the solar panels that you purchase. You need to see what for incentives, solar tax credits, rebates, and other tax benefits you qualify for. If you lease solar panels, none of those great tax breaks or incentives would apply to you.

Thinking about selling your house?

Lease prices are incremental and leasing solar panels run the risk of decreasing your home value! According the LA Times, leased solar panels can complicate — or kill — a home sale.

Does leasing solar panels make solar more affordable?

If you add up your payments on a zero-down solar lease, taking into consideration the 30% federal tax credit as well as any cash rebates that you’ll be giving away to the leasing company, you’ll find that you’ll be paying much more leasing than buying.

System Size

As long as you get production guarantee, the quality of your solar panels are subject to change and sometimes chosen randomly by a local solar installer. It is possible that you will be offered a large system that is more than what you really need and approved by lease for production guarantee. If so, be prepared to pay the full amount of your minimum monthly charge (about $15 per month) to the utility company, regardless of whether you use it or not.

Own the system

Is a solar lease a safe and effective way to invest in a solar system? No it isn’t. There is a high level of restriction and a penalty of late payment. A non-automatic payment will be charged with any extra amount.


There is no maintenance involved with a properly installed grid tie solar system.

What is the lowest price per kWh?

Your monthly payment will increase annually by about 0%-3%. If you combine that 3% increase with your regular monthly bill, within a few years you might find that your electricity expenses are higher than they should be.

Sales or use taxes on the monthly payments

The extra amount you are paying to lease a solar panel system is not listed on your sales taxes or city taxes so it is not income tax deductible. It is possible that a solar leasing provider will even charge taxes above the promotion price.

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