Many companies steer homeowners toward leasing or power purchase agreement (PPA) programs
where they don’t own the solar system themselves, but rather the installation company both owns the
system and receives the full tax credit. Even with that they can still seem attractive because of their “$0
down” appeal. However, leases and PPAs are locked in for 15-20 years and contain escalator clauses
that further reduce savings by payments increasing 2-3 percent per year. So if you’re paying 12 cents per
kilowatt-hour in year one, with a 3 percent escalator you’ll be paying 18.2 cents by year 15. And if the
cost of energy doesn’t rise as quickly as the contracted payments increase, your savings could
evaporate.

The bottom line is that leased and PPA systems deliver far less (-70% or more) in lifetime
utility savings compared to owned systems. While we understand that the upfront cost of a solar system
can be prohibitive for some buyers, Solar Plus recommends considering other avenues of financing, such
as a low-interest HELOC (home equity line of credit) which typically runs in the 3-5% interest range. It is
typical to find fixed-price financing with a lower monthly cost than your ever-increasing utility rates.

If you think that owning solar panels may be the right option for you, contact us today to set up a quote!