One of the primary reasons people would rather skip using residential solar projects is their price. Luckily, various cities and states worldwide have gone the extra mile to make solar power more accessible to homeowners by offering solar tax incentives and solar leases.

But with the monthly interest you’re paying with a solar lease–is it worth it? Or is your savings just going straight to your solar lease provider? This blog will discuss everything you need to know about a solar lease.

What is a solar lease?

A solar lease is just like getting a loan from your electricity provider. Instead of paying upfront for the solar project, the payment is split into fixed monthly payments with interest. Your electrical bill will be cut down in relation to the energy produced by your solar project.

The lease covers everything about your solar project–from equipment purchase and installation, even up to maintenance. Various solar installation services offer a solar lease. 

How does a solar lease work?

You can use all solar electricity generated by the panels once the solar energy system is established. Instead of relying on the utility for power, your home will run on the energy generated by the solar panels.

Your electric cost will be cheaper because you use solar energy rather than grid electricity. You might entirely erase your electric bill (except for some fixed charges that solar can’t offset) if your solar panels generate enough electricity to cover your energy usage through net metering.

You must, however, make your solar lease payment. The lease cost is usually less than your utility bill before installing solar. So, if your monthly electric fee is $150 and your lease payment is $100, a solar lease saves you $50 every month.

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