Solar lease

What a solar lease is

It works like leasing a car: you use the equipment, pay a monthly fee, and at the end of the term you return it, renew or buy it through a buyout. The owning company handles repairs, monitoring and, in many cases, guarantees a minimum annual production.

The difference from a PPA is that a lease charges a fixed fee regardless of how much the system produced that month. The difference from a loan is that you never own it: the system belongs to the third party, which usually files a UCC-1 on the equipment.

There is also the prepaid lease: you pay the whole rental up front. It still belongs to the third party, which captures the 48E tax credit, and in exchange the price is usually below a direct purchase after 2025.

Why it matters in Florida

It is the option most sold door to door in Florida, and the one that draws the most complaints. The reason is the escalator: the fee rises every year, and if the utility rate does not rise at the same pace, your savings shrink. The contract also follows the house: if you sell, the buyer must agree to take it over or you must pay the buyout.

Well structured (low or zero escalator, production guarantee, clear transfer terms), a lease can be a good fit for someone who wants no debt and no upfront capital. Poorly structured, it is a 25-year contract that eats the savings.

Common mistake

Comparing the lease payment to your current bill instead of the bill that remains after solar. You still pay the utility’s minimum charge, and some months consumption as well. Real savings are the old bill minus (lease payment plus new bill). We show you that math in solar lease and PPA explained.