Finance
A solar lease is a financing arrangement where a customer rents a solar energy system from a solar company rather than purchasing it outright. Under a solar lease agreement, the solar company retains ownership of the equipment while the customer pays a fixed monthly lease payment in exchange for the right to use the electricity generated by the system. This arrangement allows customers to access solar energy with little to no upfront costs. Solar leases typically last 15-25 years and often include maintenance and monitoring services. The lease payments are usually lower than the customer's previous electricity bills, providing immediate savings. At the end of the lease term, customers may have options to purchase the system, extend the lease, or have the equipment removed. For solar companies, leases provide a steady revenue stream and allow them to retain ownership of valuable assets including tax credits and depreciation benefits. Solar leases have been instrumental in making residential solar accessible to homeowners who cannot afford the upfront costs of system ownership, though they typically provide lower long-term savings compared to purchasing systems outright.