SOLAR JOE – SOLAR LEASE 101

The Solar Lease is similar to the Power Purchase Agreement (PPA).  Like the PPA, the developer builds, maintains, and guarantees power from the system for the duration of the lease.  

In this solar lease, the developer owns and is responsible for the system, so its on them to keep it humming along at at the rates that they’ve guaranteed.  And although you are leasing the system, you’ll begin to save money the day the system becomes operational, and the amount you save will just increase over time.  

DEVELOPER MAINTAINS THE SOLAR SYSTEM:  The developer designs, permits, installs, and then monitors and maintains the system for the duration of the 25 year agreement.  They guarantee the system’s performance and only charge for the power that the system generates.  If anything goes wrong with the system, it’s their problem, not yours.

Its a good investment for the developer because solar panels are tough, there are no moving parts, and a properly installed system is super reliable.  They are banking on the reliability of the system.

REDUCED ENERGY COSTS:  You get a fixed, predictable cost of electricity for the duration of the agreement.  This rate will increase by about 2.9% per year, far lower than projected utility price increases.

POTENTIAL INCREASE IN PROPERTY VALUE:  Solar Photovoltaic (PV) systems have been shown to increase residential property values, and this solar lease can be transferred when a home is sold.  

25 YEAR AGREEMENT:  a big step (in the right direction) 

YOU WILL STILL RECEIVE A UTILITY BILL:  Remember, you’re still on the grid.  Sometimes your system pushes power into the grid, other times your power will come from the grid.  This is called “net metering” and there is a small charge for just being connected.

PERFORMANCE IS GUARANTEED:  If the system under-performs, you’ll be reimbursed for the amount the system underperforms.  If the system over-performs, the power from overproduction is free.  Keep in mind that performance is calculated yearly, not monthly or daily.  In most of the US, solar systems perform far better in the summer than they do in the winter, so overall performance has to be averaged out over an entire year.   

So there you have it, Solar Joe – Solar Lease 101, subject to change, and limited on detail.  All of this is included in the actual Agreement.  We’ll sit down together to discuss it in more detail.