Go Solar Power For Homes

Lease or rent a photovoltaic (PV) solar system to secure some very strategic advantages toward implementing a alternative energy home. Strictly speaking, there are basically two types of PV solar agreements. The actual rent or lease contract is a quasi pay-as-you-go purchase plan. Its purpose is to give the homeowner all the functional benefits of ownership without the need for an outright upfront massive purchase ($20k – $60k before rebates and incentives) that will support your alternative energy home

The second type of agreement emphasizes the purchase of solar electrical power at a fixed cost (usually referred to as a solar Power Purchase Agreement or PPA). These agreements (also contractual in nature) essentially remove ownership issues from the economic equation entirely. For the duration of the contract, the homeowner agrees to hosts the solar power system on his/her property (usually the roof) but does not concern himself with any system operation details. In other words, you might say, “Why buy the solar cow if all you need or want is the (really cheap) milk?”.

There is a process associated with securing these agreements and not everyone will be able to take advantage of the programs available through different vendors (some vendors will offer leases in one state and PPAs in another). Just the same, exploring a solar power purchase is more than worth the effort since what hangs in the balance is an immediate expenditure of tens of thousands of dollars (or no solar benefits at all). Consider these advantages:

1) Reduced long term power costs – Power costs are expected to rise by as much as 10% per year over the the next 20 – 25 years. Hosting a PPA PV solar installation and purchasing the energy it produces, (by contract) can lock your costs at a low level, thus shielding you from commercial electrical energy price increases. In fact, it’s by design specification that the solar per watt cost will be significantly lower than commercial per watt costs. Otherwise, there’s no financial advantage.

2) Almost no upfront capital required – Many PPA programs will install a PV system for zero cost to the homeowner. Some programs, including leases and rentals, ask for a small down payment (on the order of $1000 – $6000).Generally, all the plans find a way to reduce or eliminate the need to come to terms with a painfully large initial cash outlay.

3) Minimal Homeowner System Responsibilities – PPAs place all design, installation (contractor arrangements, permits, interconnection, etc…), maintenance and servicing responsibilities squarely with the system provider. The homeowner simply purchases power generated by the system. Contrast this with outright system ownership where owning the asset and its benefits also means owning the maintenance, and any problems that arise.

4) The option to purchase remains intact – Some financing alternatives provide a purchase option using favorable terms at the end of the contract. Keep in mind that through the PPA, you’ve (hopefully) supplanted your monthly commercial power costs, and are saving money. Given the savings, the option becomes a more attractive proposition.

5) Immediate homeowner benefits – with a lease, rent or PPA, the solar benefits are not held hostage by bureaucratic red tape, as far as incentives are concerned. As soon as the system is installed, the main benefits flow to the homeowner (especially financial). In addition, the agreements can be transferred and will increase the value of the home.

Most solar panel lease arrangements can provide a viable and financially advantageous path for homeowners to make their home solar dreams a reality. However, whether or not a solar panel lease is best for a particular situation does depend on a number of factors. At our alternative energy home plan website, we take a look at various issues affecting a residential alternative energy plan and present additional information and resource links for investigation/review.

To find additional specific solar financing alternative information and issues, see our solar financing alternative web page.

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