Solar Leasing Contract

Through a Solar Leasing Contract, the customer can rent the benefits of pure solar energy from a solar installer without being the sole owner of the point source solar energy system. The customer in this situation would only pay a fixed monthly fee that would be a function of the production capacity of the leased solar power system installed (Thoubboron, 2021). The solar company would be responsible for the installation of the solar power system, for the maintenance and troubleshooting of any of the system’s main or auxiliary components. Such a contract would last between 2 to 20 years (Peng, 2021).

Solar Purchase Power Agreement (PPA)


Through a Solar Purchase Power Agreement, the solar company would install a solar power system onto the customer’s property. They would design, build, install and maintain the system on behalf of the customer. The customer gets charged a monthly rate based on the amount of energy consumed based on the agreement itself. The timeline for such contracts ranges from 10 to 25 years (Thoubboron, 2021) (Peng, 2021).

When it comes down to the benefits, both options provide the same benefits to the clients, the only difference would be the actual presence of the system within the customer’s property. Perhaps the latter would have the additional benefit of promoting the client’s image by promoting their installed system to the customers stakeholders.
 

Summary

When it comes down to the benefits, both options provide the same benefits to the clients, the only difference would be the actual presence of the system within the customer’s property. Perhaps the latter would have the additional benefit of promoting the client’s image by promoting their installed system to the customers stakeholders.

Sources:

• Peng, V. (2021, July 28). SOLAR PPA VS LEASE: HOW TO DECIDE WHICH ONE IS BETTER FOR YOU. Retrieved October 5, 2022, from WattLogic: https://wattlogic.com/blog/solar-ppa-vs-lease/

• Thoubboron, K. (2021, March 1). Solar leases vs. solar PPAs: solar financing options for a low-maintenance solar energy system. Retrieved October 5, 2022, from energysage: https://news.energysage.com/solar-leases-vs-ppas/