Buy vs lease vs PPA
| Buy (cash or loan) | Lease | PPA | |
|---|---|---|---|
| Who owns the system | You | The leasing company | The provider |
| What you pay for | The system | Use of the system (monthly) | The electricity it produces (per kWh) |
| Incentives / tax benefits | Go to you, if you qualify | Go to the owner | Go to the owner |
| Maintenance | Usually you (check warranties) | Usually the company | Usually the provider |
| Selling your home | System transfers with the home | Lease must be transferred or bought out | Agreement must be transferred or bought out |
Leases and PPAs often run about 20 years (FTC). Read the escalator clause (annual price increase) and buyout terms before signing.
Sources: FTC: Solar Power for Your Home; DOE Homeowner's Guide.