Glossary
Buyout
The buyout is the option, within a solar lease or PPA, to purchase the system from the owning company before the contract ends or at the end of the term. The price is usually set in a year-by-year schedule or as fair market value at that time. It is the number that decides how much it costs to get out of the contract if you sell the house.
What a buyout is
In a third-party contract you never own the system, but almost all of them include a clause to buy it. There are two moments: the early buyout, usually allowed after a set number of years, and the end-of-term buyout, when the 20- or 25-year contract expires and you can keep the equipment, renew, or ask for it to be removed.
The price is defined in one of two ways. With a fixed schedule, you know from day one what it costs in each year. With “fair market value,” an appraiser sets the value at the time, and you do not control the result.
Why it matters in Florida
People move here. If you sell a home with an active lease, the buyer must qualify and agree to take over the contract. Many will not, or their bank objects to the UCC-1. The way out is to pay the buyout and hand over the system free and clear. If that number is high or undefined, it can eat a meaningful slice of your sale proceeds.
It also matters with prepaid leases and the solar subscription: ask what happens at the end. In the subscription we offer through our partner, removal at the end of the term is free and the roof is warrantied afterward; in a traditional lease, removing the system can carry a cost.
Common mistake
Not asking for the buyout schedule before signing. If the salesperson says “we will look at that later” or “it is market value,” assume it will be high. Get the number per year, in writing, and compare it with what you will already have paid by then. The full question list is in solar lease and PPA explained.
Full guide: Solar lease and PPA explained: ownership, escalator, buyout and 48E in 2026 →
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