Solar Panel Billing? | HomeLink

How Does Solar Panel Billing Work?

Solar Lease and PPA Bills Explained

Solar leases and power purchase agreements (PPAs) allow you to receive the financial benefits of solar energy without having to buy a solar system. A solar provider handles the installation, and then leases the equipment to you at a fixed monthly amount or sells you the electricity the panels generate at a set price per kilowatt-hour (kWh).

How Do Solar Providers Measure and Charge for Energy Usage?  

One of the great advantages of solar lease and PPA plans is that your solar provider will carefully monitor your system’s performance and equipment until your lease or PPA contract ends. And in most states, the average electric bill savings with solar panels translate into thousands of dollars over the next two to three decades.

Solar leases and PPAs are often valid from 20 to 25 years, and like leasing a vehicle, when the term ends you have the option to renew your agreement, purchase the system or, in the some cases we can also remove the panels and restore your roof to its original condition before installation.

What Are the Differences Between Solar Lease and PPA Billing?

Solar Lease Billing:

With a solar lease, you have a contract stipulating your solar provider agrees to fund the financing, permitting, and installation of a solar system and charge you a monthly rate for its use during the length of your lease term.4

Consider these three factors:

  1. Your solar company owns the system.
  2. You pay a monthly amount to lease the system.
  3. In many instances, solar leases include maintenance, repairs, system monitoring, and insurance for the duration of your plan.

With a solar lease, you'll be completely covered with a comprehensive warranty. will also get the value from incentives, rebates, and tax credits to you in the form of a lower solar lease bill; making it an ideal solar plan to secure long-term peace of mind.

Solar PPA Billing:

With a PPA, you have a contract with your solar provider where they handle the financing, permitting, and installation of a solar system in your property for little to no cost. Then, you agree to purchase the power produced by the panels at a set price per-kilowatt-hour (kWh); which depending on the type of PPA plan your provider offers, you can pay for the power monthly or prepay for it altogether.

Consider these three factors:

  1. Your solar company owns the system.
  2. The system’s expected production in Year 1 determines the price you pay for your energy.
  3. You pay a monthly bill or pay upfront for all the expected production. And while other solar providers may send you a variable monthly bill, or even an annual True-Up statement if your panels produce more energy than expected; with Sunrun’s PPA plans, the overproduction will always be yours and free of charge. Meaning, there’s no True-Up statements, and we’ll only send you fixed monthly bills based on the system’s expected production.

In many instances, monthly and prepaid PPAs include maintenance, repairs, system monitoring, and insurance for the duration of your plan.

With a prepaid PPA plan, there are no monthly solar bills. And because you’re prepaying for your energy, you’ll maximize your peace of mind. Besides, your provider takes into account the Solar Investment Tax Credit (ITC),6 so it feels like buying a system, but without the hassles of dealing with IRS forms. Plus, it includes bumper-to-bumper coverage for the life of the product; making it an ideal solar plan if you’re looking for simplicity.

Are Solar Lease and PPA Plans Worth It?

Since solar leases and PPAs let homeowners avoid the high upfront solar panel cost right off the bat and skip the maintenance and monitoring worries of solar ownership, they’re both solid ways to switch to solar.7

Especially with a provider such as HomeLink, where we offer professional installation, maintenance, monitoring, along with system insurance during the length of your solar lease or PPA agreement. And if you happen to sell your home, we guarantee a seamless agreement transfer for the new buyer/owner of the property.

Now’s a Great Time to Go Solar

Solar system prices have dropped to an all-time low,8 prompting solar energy installations to skyrocket. In fact, there are now 1.5+ million residential solar systems installed in America, and approximately every 90 seconds, a new homeowner is going solar somewhere in our country.9

Solar energy is one of the best ways to offset your future electricity bills. Especially when you’re living in Hawaii, Massachusetts, Rhode Island, Connecticut, California or New York; that have the highest utility rates in the U.S.10 Solar panel savings in these states could add up to $36,000 or more throughout the next two or three decades.

While financial returns are a smart reason to go solar, money isn’t the only thing solar systems help you save. When you install solar panels on your roof, you help the environment too, by reducing your carbon footprint.11

Peace of Mind for Years To Come

If you’re considering a lease or PPA plan to get your new residential solar system, we recommend contacting HomeLink Pros.

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