Path-Q Solar

What lease terms should I examine before deciding whether solar is affordable?

Answer

Examine the complete payment schedule, escalator, production guarantee, residual utility charges, buyout and transfer rules, and responsibility for maintenance and property-related work. Affordability should be based on total expected out-of-pocket cost and cash flow, not the initial lease payment.

Key points

  • Ask whether payments increase and whether the increase is fixed, capped, or linked to another measure.
  • Confirm the total scheduled payments and any separate utility, monitoring, insurance, or tax charges.
  • Review remedies if production is below the guarantee and who pays for repairs.
  • Check early termination, purchase, removal, roof replacement, and home-sale provisions.

What it depends on

  • Lease contract and payment schedule
  • Expected production and guarantee methodology
  • Utility bill structure and export rules
  • Property ownership and likely time in the home
  • Provider credit and transfer requirements

Risks and trade-offs

  • A lower starting payment can conceal a higher long-term cost.
  • A production guarantee may not guarantee bill savings.
  • Transfer or buyout requirements can create a financial obstacle when selling.

Information you may need

  • All contract exhibits and fee schedules
  • Projected annual and monthly bills
  • Buyout and transfer calculations
  • Maintenance and performance-guarantee terms

Your next step

What to do next

Put every lease payment and expected utility charge into a year-by-year cash-flow table and compare it with ownership alternatives.

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