Chapter 7 · PPA / Lease ("Free Install") Contract Traps
7.2 PPA vs Lease — same trap, different label
| Lease | PPA (Power Purchase Agreement) | |
|---|---|---|
| What you pay | Monthly rent on the equipment | An agreed price per kWh produced |
| Year-over-year escalator | Typically 2.9%–3.9% | Typically 2.9%–3.9% |
| Who owns the system | The solar company | The solar company |
| Who gets the ITC (30%) | The solar company | The solar company |
| Contract length | 20–25 years | 20–25 years |
| Impact when selling the home | Difficult | Difficult |
For the homeowner, Lease and PPA are the same trap — only the billing mechanism differs.
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7.1 The core deception in California's PPA / lease contracts
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7.3 The real cost: you end up paying 5× the market price of the system
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Questions after reading this section? Send us your utility bill — we will come back within one business day with a recommendation specific to your situation.