Written by U.S.SolarEnergy

With a lease, you pay a fixed monthly fee over a 25-year period. With a Power Purchase Agreement, you pay for each kWh that the solar system produces. In each case, you can expect to pay less than your current electricity cost.

If you lease your system, you are not eligible for federal, state, and local financial incentives associated with solar. In that regard, it is a great option for homeowners who do not have sufficient tax liability to take advantage of the incentives, and still want to reduce their monthly electric bill.