Comparative table highlighting the differences between buying a solar system, entering into a Power Purchase Agreement (PPA), and leasing a solar system:
| Aspect | Buy | Lease | PPA |
|---|---|---|---|
| Upfront Cost | High | Low/None | None |
| Total cost of System & Install | ✅ | ❌ | ❌ |
| Ownership (immediate ownership) | ✅ | ❌ | ❌ |
| Monthly Payments (unless finance) | ❌ | ✅ | ✅ |
| Warranty Cover | ✅ | ✅ | ✅ |
| System Performance (monitored & managed) | On client | Monitored | Monitored |
| Tax Incentives (eligible for tax benefits) | ✅ | ❌ | ❌ |
| Depreciation (can claim on Taxes) | ✅ | ❌ | ❌ |
| Energy Cost Savings (reduction in Bills) | ✅ | ✅ | ✅ |
| Contract Terms (owns the system) | ❌ | ✅ | ✅ |
| End Contract (buy, renew, remove) | N/A | Options to buy | Options to buy |
These are general guidelines and specific terms may vary based on the solar provider, the agreement, local laws and regulations, and other factors. Always consult with a solar energy professional to understand the details and implications of your solar energy decision.
