Are you thinking of upgrading your Florida home with solar panels? You have several options for financing your solar power system, including buying it outright, getting a loan, or signing a lease. A lease is one of the most convenient and cost-effective ways to get the benefits of solar panels, but how much is a solar lease per month?
Our team at PES Solar explains solar leases in this article, including the most common lease terms, what Power Purchase Agreements (PPAs) are, and the average monthly cost of solar leases in Florida.
How Does Solar Leasing Work?
With solar leases, you agree to pay a monthly cost to have solar panels powering your home, but you don’t own the system. You get the advantage of reduced energy bills and eco-friendly, renewable power without the high upfront costs. However, since you don’t own the solar panels, you won’t be able to get federal tax credits and incentives for using solar energy.
Typical Terms of a Solar Lease
The average cost for a 5kWh solar power system in Florida is $2.65 per watt, compared to the state’s average electricity rate of $14.59 per kWh. Some solar agreements include an annual escalator, where the solar companies increase the monthly rate each year.
The typical term length for a residential solar lease is 20 to 25 years. Commercial solar leases are more customizable, and businesses might lease a solar energy system for 7 to 20 years.
The solar leasing company will ensure that the system operates correctly throughout the lease, monitoring its performance and conducting maintenance and repairs when necessary.
Ending the Lease
If you need to end your solar lease, you can wrap up the contract in three primary ways:
- Buy out the solar panel system at the contract price or fair market value
- Transfer the lease to the buyer when selling your home
- Have the solar provider remove the system at the end of the contract
The Difference Between Solar Leases and Solar PPAs
Solar leases and solar PPAs are similar in that they’re contracts the customer signs with a solar company to use solar panels they don’t own. However, PPAs typically have a monthly payment that comes from the price per kWh, while solar leases have a set monthly amount.
With a solar PPA, the amount you pay monthly depends on the power the solar panel system generates, meaning it gets more expensive at certain times of the year.
Professional Solar Panel Installation in The Sunshine State
The answer to “How much is a solar lease per month?” ultimately depends on your home and location, but Florida’s solar energy costs can be much lower than traditional energy costs. Our expert crew at PES Solar has installed over a million solar panels and can set up your home with an efficient, top-of-line solar power system.