Get the benefits from saving with solar savings whilst you pay no upfront costs for the supply and installation of your solar panels.
For consumers interested in switching to solar energy but can’t afford to pay for an entire system’s upfront or total costs, GRES offers solar PPA and leasing options.
Not to be mistaken with cash loans, solar leases and PPAs (Power Purchase Agreements) are arrangements where the consumer can have a fully operational solar energy system installed on their roof, allowing them to enjoy the perks of renewable energy such as reduced carbon emissions and lowered energy bills.
However, the company from where the lease or PPA is acquired still owns the system.Both solar options are very similar in practice to the point that consumers usually can’t tell them apart. To help you understand them much better, here’s the difference between the two:
With a solar lease, the customer leases the solar panels and the components, and agrees to pay a fixed monthly rent or lease payment that is based on the amount of electricity the solar system will produce.
The lessee will still get to enjoy the same benefits as someone who owns a solar system, such as lower electricity costs and the ability to buy/sell electricity.
Plus, the leasing company will be responsible for maintaining and repairing the system. Lease terms for residential clients usually last between 20 to 25 years, while solar leases for commercial customers generally range from 7 to 20 years.
With a solar PPA, the customer doesn’t own or lease the solar system that will be installed on their roof.
Instead, the customer agrees to buy the electricity generated by the system at a price that is based on the terms of the PPA company, which can either be at a fixed monthly amount or not a fixed monthly amount.
And similar to a solar lease, the PPA company will take care of the maintenance and repairs of the system. Solar PPA contracts are usually for 20 to 25 years.
Different Forms of Solar Leasing and PPA
Customers have the freedom to choose between the different forms of solar leasing and PPA. Normally, there are three types: zero down payment leases/PPAs, custom down payment leases/PPAs, and prepaid solar leases/PPAs, each of which has varying pros and cons.
Due to the similarities between the two options with the exact terms of a solar lease and PPA offerings varying greatly by company, with some solar contractors having hidden upfront costs or unfavourable lease conditions.
GRES will help you determine which solar option and type that is best for you with terms and agreements that are favourable to the customer.