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Solar Lease vs. PPA

Upgrade to solar for a low upfront with a solar lease or PPA.

Until recently, homeowners who wanted to go solar had to buy expensive equipment, costing anywhere from $15,000 to $60,000 or more. Now, there are two new options - solar leasing and power purchase agreements (PPA). You don’t choose between a lease or a PPA; it's determined by where you live and which electric utility connects to your system.

With either a lease or PPA, Sunrun pays for the solar panels, power inverter, installation, permits, and all the upfront costs. You simply pay a monthly electricity bill. Compare the differences:

Solar lease: You pay a fixed amount every month for your solar panels. You pay the same each month, regardless of how much energy your panels produce. 

Power purchase agreement: You pay a fixed rate for the electricity your panels produce. You only pay for the electricity your system produces each month.

More homeowners choose solar leases and PPAs

Solar leases and PPAs are now the most common way for homeowners to go solar. In 2011, more homeowners chose to lease solar / PPA over purchasing a system in California, the nation's largest residential solar market.