Solar panel leasing
Solar leasing is a form of financing that allows you to enjoy some of the benefits of solar power without paying the upfront cost of a system. Solar leasing is typically suited to commercial solar rather than household installations.
If you cannot afford the upfront cost of new solar panels, we recommend you consider other solar finance options before considering solar leasing.
Check to see if you will own your panels
You can enter into a lease agreement with a solar installer, whereby they will supply and install your solar system at no cost. You will pay off the system over time with fixed monthly repayments. One important consideration with leasing is that you do not take necessarily take ownership of the solar system. Leasing is a different form of finance to a solar loan where you do have ownership over your system.
One advantage of solar leasing is that you are not responsible for the upkeep of the system; that responsibility rests with the provider. However, if you buy good solar panels, they will require very little maintenance.
After a reputable installer?
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, e.g. 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 panels without paying for the system yourself.
While you will benefit from savings, you will not be financially better off under this type of arrangement as opposed to buying the solar system yourself outright.
How it works
You 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.
Want to talk solar finance?
If solar financing is of interest to you, we’re here to help. We can put you in touch with reputable operators. Complete our quick quote form and tick the solar finance checkbox under finance options. Note, we do not provide financial advice; please read this disclaimer for more details.