A solar lease or solar finance is a type of Third-Party Ownership (TPO) financing model. In this arrangement, the solar panels, as well as the supporting equipment, are not owned by the business/home owner. It is leased out by the solar company that installed it.
When you lease a solar system, you are receiving all the benefits of having a solar system without the upfront cost of purchasing and installing your solar panels. If you lease your solar power system, most companies make sure that the solar power system is maintained professionally and is running at peak performance throughout its service period.
The business/ homeowner can select between choices of financing alternatives that best suit their financial situation and work as per the physical space available on their premises.
Solar leases can be planned so customers pay no up-front costs, pay some of the system’s cost, or purchase the system before the end of their lease term.
In all of these options, a fixed monthly charge is paid to the leasing company in exchange for the right to use the system.