Solar Lease & PPA Options
Solar leasing companies offer 3 types of solar lease and PPA:
1. $0-down Solar Lease/PPA
Rate per kilowatt hour (expressed as S$ / kWh) for the solar electricity
Average rate over the life of the solar lease / PPA contract
Discount on current electricity rates
2. Custom Down-payment Solar Lease/PPA
S$ / kWh for solar electricity
Average rate over the life of the solar lease / PPA contract
Discount on current electricity rates
Rate of return on your investment (or IRR)
3. Prepaid Solar Lease/PPA
S$ / kWh for solar electricity
Net cost expressed in terms of dollars per watt of the installed system
Rate of return on your investment (or IRR)
What Is The Difference Between A Solar Lease And PPA?
While the terms “Solar Lease” and “PPA” are very similar in practice, there is a difference between the two. With a solar lease, you agree to pay a fixed monthly “rent” or lease payment, which is calculated using the estimated amount of electricity the system will produce, in exchange for the right to use the solar energy system. With PPA, instead of paying to “rent” the solar panel system, you agree to purchase the power generated by the system at a set per-kWh price.
Overview of Solar Lease & PPA
Many are $0-down agreements, but some require a down payment or ask you to pay upfront.
You can expect 20% to 40% savings over the cost of your utility electricity bill.
With a solar lease, you do not own the solar panel system on your property.
Compare Your Solar Lease & PPA Options
Solar lease & PPA offerings vary significantly by company and type of agreement, so it’s important to shop around to find the best option for your needs. Solar Era will show you the Best Quotes and calculate the necessary metrics to help you to understand why the quote is the best for you.