Guide OverviewChapter 7 · PPA / Lease ("Free Install") Contract Traps
Chapter 7 · PPA / Lease ("Free Install") Contract Traps

7.2 PPA vs Lease — same trap, different label

LeasePPA (Power Purchase Agreement)
What you payMonthly rent on the equipmentAn agreed price per kWh produced
Year-over-year escalatorTypically 2.9%–3.9%Typically 2.9%–3.9%
Who owns the systemThe solar companyThe solar company
Who gets the ITC (30%)The solar companyThe solar company
Contract length20–25 years20–25 years
Impact when selling the homeDifficultDifficult

For the homeowner, Lease and PPA are the same trap — only the billing mechanism differs.

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