In a solar lease, the solar energy developer and the land owner agree to a fixed rate to install solar panels on their property to produce solar energy. This may include a single payment to the developer to eventually buy the panels, or may be a way to defer the cost of panel installation and keep power rates fixed. The solar energy developer then sells the electricity back to the property owner, the local utility company, or both. In Las Vegas the public power company will not pay for energy put onto their grid, and therefore Get Solar will not place more panels on a lease property that exceeds energy use. A lease often results in savings on power, but a payment on the power system. For this reason most homeowners opt for immediate savings with a PPA.
When it comes to residential solar systems, the key distinction between a solar lease and a PPA falls under the payment method. In a solar lease, you make a fixed monthly rental payment in exchange for utilizing the solar system. On the other hand, with a PPA, you pay a predetermined rate per kWh of energy consumed from the solar panels. In this case, the developer covers the cost of the solar installation and sells the solar power to you at a fixed rate. Essentially, instead of leasing or purchasing the solar system, the property owner only pays for the power that they consume.
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