Homebuyer seeks sincere advice while closing deal on house with solar panel lease: 'Anyone familiar with this?'

A new homebuyer unfamiliar with solar energy took to Reddit for advice while closing on a property with a solar panel lease. 

They wondered whether they should cancel the lease or transfer ownership to themselves, asking in r/solar: "Anyone familiar with this, can shed some light if this a good program to have?"

After some clarifying questions, the commenters deduced the contract was a power purchase agreement, or a PPA. The gist is that the developer will install the panels for no cost, while the household that leases the panels pays a fixed monthly fee for clean electricity.  

A few commenters suggested trying to get the seller to offset the cost. One described the rate as a "solid price."

"If you can get the seller to buy it out, you should (free power!)," they said. "Buying any amount (assuming it's equal to or less than your monthly needs) at a rate guaranteed to be well below your utility for the foreseeable future is a good thing."

Another said, "That's solid. I would keep it. Utility rates are much higher."

While leases are not ineligible for federal and state incentives, the practice does have some big plus points. As already mentioned, avoiding that upfront cost of purchasing solar panels is a huge advantage for households that want to obtain electricity from a renewable source of power, contributing to healthier air quality in their communities. There's also no maintenance issues to worry about.

However, as the OP's post highlights, figuring out your solar leasing options can be intimidating.

Ultimately, whether leasing is the best option is a matter of individual circumstances, but doing your homework could pay dividends in the long run as a way to tap into solar without a major upfront investment. 

Fortunately, there are some good tools to help homeowners navigate the solar landscape. For instance, Palmetto is one company that can allow a similar approach through its LightReach solar leasing program — and maximize your potential savings. If you're looking to buy solar panels instead of leasing, check out EnergySage's free tool to compare solar panel quotes.

What's the biggest factor stopping you from investing in solar panels? The cost 💰 The technology ☀️ I'm a renter 🏢 I'm already invested 😎 Click your choice to see results and speak your mind.

One Redditor, based on firsthand experience, recommended keeping the lease, as a U.S. grid that still mostly relies on dirty fuels can have less consistent pricing. 

"You don't have [to] worry about your utility company going up on price for you," they wrote, adding that they had also experienced a reduction in their utility bills.  

"Has saved me a good amount of money that I could invest into other things," they added. 

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