Solar
leasing

Solar leasing is an option if you do not want to pay the upfront cost of solar. You can enter into a lease agreement with a solar installer, whereby they will supply and install your solar system and you will pay it off over a period of time with fixed monthly repayments, but upfront the panels are free. One important consideration with leasing is that you do not take necessarily take ownership of the solar system, it is a different form of finance to a solar loan where you do have ownership over your system.

One advantage of a solar lease agreement is that you don’t have to worry about the upkeep of the system. That responsibility rests with the provider.

Solar power
purchase agreement

Another form of leasing is a solar power purchase agreement (solar ppa). With a solar PPA, an operator will install a solar system on your roof for free. You then agree to buy electricity from the operator at a reduced rate, instead of from your electricity retailer. The agreement will likely run for a fixed term eg. 15 – 20 years. Ownership of the system belongs to the installer and scheme operator. You get to enjoy some of the savings and advantages of solar power without paying for the system yourself.

We must point out, that whilst you will benefit from savings, you would not be financially better off under this type of arrangement as opposed to buying the solar system yourself outright.

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How it
works

You need to enter into an agreement with a solar installer that doubles as a solar lease or solar PPA provider. They will install a system of your choosing on your roof. You will benefit from the power savings generated by the system. If you are contemplating solar leasing options for your property, it’s good to know how it works and the advantages and disadvantages of this type of financial arrangement.

Advantages to solar leasing

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    You pay nothing upfront

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    Benefit from solar savings immediately

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    Solar power savings may be greater than your lease payments

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    Not responsible for the upkeep of the system

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    Ownership can be incorporated in a solar ppa at extra cost

Things to consider

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    You need to make monthly repayments

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    You are locked into a fixed contract

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    Do not take ownership of the solar system

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    If you have the cash, you would benefit financially by paying upfront

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    Lifetime savings won’t be as high

Want to talk
to a solar
lease provider?

If you believe solar leasing may suit your solar and financial needs, we’d be happy to help. We can put you in touch with reputable lease operators. Simply complete our quick quote form and tick the solar leasing checkbox under finance options. Note, we do not provide financial advice, please read this disclaimer for more details.