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Key Points
- Solar leases and power purchase agreements (PPA) are two payment options with minimal upfront costs.
- The main difference between a solar lease and PPA is under a solar lease, you pay a fixed monthly rate, no matter how much energy is generated or consumed
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Frequently asked questions
The main difference between solar leases and PPAs is what you pay. In a solar lease, you pay a fixed monthly rate for the use of the solar panels. In a solar PPA, you pay a fixed rate per kWh of energy consumed from the solar panels.
No. Solar leases and PPAs are not eligible for solar tax incentives or rebates because you are not the owner. Instead, the solar company will benefit from incentives.
A cash purchase and solar loan are two financing, incentive-eligible options. Community solar is another option if you cannot install solar panels on your home.