So your contract is A Lease?

If the contract says Lease: "You are leasing the system," "This agreement is a lease," or "Rental payments." The solar provider (lessor) retains ownership of the system throughout the duration of the contract. The homeowner (lessee) is simply paying to use the system.

A solar lease is an agreement where a homeowner pays a monthly fee to use a solar energy system that is owned and maintained by a solar company. The homeowner benefits from lower electricity bills but does not own the system or receive tax incentives.

Key Features of a Solar Lease:

  1. Fixed Monthly Payments

    • Homeowners pay a set amount each month to use the solar system, regardless of how much energy it produces.

    • Some leases have escalators, meaning the payment increases over time (typically 1–3% per year).

  2. No Upfront Costs

    • Most leases require little to no upfront payment, making it an affordable way to go solar without purchasing a system.

  3. No Maintenance Costs

    • Since the solar company owns the system, they are responsible for repairs, maintenance, and monitoring at no extra cost to the homeowner.

  4. System Stays with the Home

    • The leased system cannot be removed or relocated—it remains installed at the property even if the homeowner moves.

  5. No Tax Credits or Incentives

    • Since the homeowner does not own the system, they do not qualify for federal or state solar incentives—the leasing company receives those benefits instead.

    How Warranties Work with a Solar Lease

    With a solar lease, the homeowner does not own the system—the solar company owns and maintains it throughout the lease term. Because of this, warranties work differently than with a purchased system:

    1. System Maintenance & Repairs

      • The leasing company is responsible for maintaining and repairing the system at no extra cost to the homeowner.

      • Covers equipment failures, inverter replacements, and panel malfunctions.

    2. Performance Guarantee

      • Most solar lease agreements include a performance guarantee, ensuring the system produces a minimum amount of energy.

      • If the system underperforms, the leasing company may provide compensation or additional maintenance to meet expected output.

    3. Roof Penetration Warranty

      • If the system is installed on the roof, many lease agreements include a roof penetration warranty (usually for 10 years) covering leaks or damage caused by the installation.

    4. Battery Warranty (if applicable)

      • If the leased system includes a battery, the leasing company typically covers repairs and replacementsunder the lease agreement.

Example Contract
Example Addendum

Just like any home sale, an inspection is essential for identifying existing issues and necessary repairs—but what about your solar system? Solar Certified Pro offers comprehensive solar system inspections to ensure the system is functioning properly for the new homeowner. Our inspections also highlight any aesthetic concerns or potential bird-related issues that often come with solar panel installations. Feel free to schedule one with us, we recommend doing so during the due diligence time frame, however, this can still be done if you are past due diligence.

Inspections