How many years is the lease term for photovoltaic panels

How long does a solar lease last?

The typical solar lease lasts around 20 years, but terms may vary between solar panel installation companies. Some companies offer leases for up to 25 years, which aligns with the average home solar panel life span. Your lease agreement will include panel maintenance and servicing terms for the length of your contract.

What is a solar lease?

You can think of a solar lease like a car lease – it’s a form of third-party ownership (TPO) where you don’t own the product that you’re paying for. Under a solar lease, this third-party owner (e.g., a solar company) installs solar panels on your property and then sells you the electricity produced at a predetermined monthly rate.

What happens when a solar lease ends?

At the end of your solar lease term, you may be able to renew the contract or upgrade to a newer system. In some cases, you may also purchase the solar panels outright from the provider.

Does a solar lease cover a roof penetration warranty?

As well as covering the costs of the solar panel system, most solar lease suppliers also cover a roof penetration warranty. In some parts of the US, the weather is notoriously unreliable, which means solar panels can generate more energy on some days compared to others.

Should you buy or lease solar panels?

Homeowners who are considering solar panels have multiple buying options, including a cash purchase, solar loan or leasing solar panels. While a single cash purchase can be viable if you have the funds available, there are also ways to go solar at zero upfront cost — like with a solar lease.

Does a solar lease fit a home?

From a financial standpoint, a solar lease may fit homeowners who meet the following conditions: A solar lease also delegates system maintenance to the provider, although solar panels typically do not require much maintenance beyond regular cleaning.