A solar lease is a financing option that allows homeowners to benefit from a solar and battery system without purchasing the system upfront. Instead, a provider installs and owns the system, and the homeowner pays a predictable monthly fee to use the electricity it produces.

This model makes solar more accessible by reducing or eliminating upfront costs while shifting system ownership and maintenance responsibilities to the provider.

According to the U.S. Department of Energy, third-party ownership models like leases have helped expand access to residential solar by lowering the initial cost barrier¹.

How a solar lease usually works

• A provider installs a solar system on the home

• The provider owns and maintains the system

• The homeowner pays a predictable monthly payment

• The homeowner uses the electricity generated by the system

This allows homeowners to benefit from solar energy without managing installation, maintenance, monitoring, or repairs.

Why homeowners choose solar leases

Solar leases are one of several ways to go solar and may appeal to homeowners looking for a simpler entry point.

Common reasons include:

• Little to no upfront cost

• Predictable monthly payments

• Maintenance and monitoring typically handled by the provider

• No need to manage system performance directly

The Solar Energy Industries Association notes that third-party ownership models have played a significant role in residential solar adoption in the U.S.²

How solar leases relate to subscription-style plans

Solar leases are closely related to subscription-style solar plans.

With providers like Sunrun, this model is often structured as a solar subscription, where homeowners pay a consistent monthly amount for access to solar energy and solar battery storage while the provider manages the system.

For homeowners, this typically means a more streamlined experience, where installation, monitoring, and maintenance are handled as part of the overall plan rather than as separate responsibilities.

Solar lease vs. other solar financing options

Solar leases are one of several common solar financing approaches.

• Solar lease: The provider owns the system and the homeowner pays a monthly rate for solar and storage.

• Ownership (cash or loan): homeowner owns the system and is responsible for maintenance

Each option offers different tradeoffs depending on financial goals, preferences, and level of involvement.

What to consider with a solar lease

Before choosing a solar lease, it’s important to understand key factors:

• Contract length and terms

• Payment structure and potential increases

• Responsibility for maintenance and service

• What happens when selling the home

Understanding these details can help homeowners choose the option that best fits their needs.

Takeaways

• A solar lease allows homeowners to use solar without a high up-front investment

• The provider installs, owns, and maintains the system

• Homeowners typically pay a fixed monthly fee

• Lease models are often delivered through subscription-style plans

• This approach can simplify the solar experience for many homeowners