Overview of Solar Leases & PPA's in the Central Valley

Solar Leases and PPA's in Todays Marketplace

Solar leases are now the most popular way for consumers in California to invest into solar. There are two different options in this arena, leases and PPA's. (Power Purchase Agreements)

A PPA works by allowing you to purchase energy produced from the solar system at a lower cost than purchasing the same energy from PG&E.

A solar lease supplies energy for your utilazation for a monthly fee. Usually, this fee is less than purchasing the same energy from the utility.

Up until last year, there were two primary options available to homeowners. A solar lease from Solar City and a PPA from Sun Run. Solar City's lease is available through Solar City. Sun Runs PPA is available through REC Solar, Life Style Solar, and Real Goods Solar.

The problem with these two products are as follows:
1. Both programs typically do not offset all of a customers energy's needs. This means a left over bill paid to PG&E.
2. Both programs do NOT allow for ownership.
3. Both programs have high inflation rates as compared to other programs.
4. Both programs have historically utilized some of the least expensive equipment available.
5. Both programs require very stringent credit requirements.
6. Both are "20 year" terms. This is a very long time for a basic equipment lease.

In 2010, Sungevity entered the market place. They offer a ten year lease with a buy out of fair market value. Fair market value is not good for consumers because you never know what your actual costs will be. Most of us have Never entered into a legal contract not knowing what the contract and terms will actually cost us.

Also in 2010, Sun Tech (Chinese solar manufacturer) has entered the market with their new solar lease. It is a fifteen year lease with lease payments typically less than your current electric bill. They have a buy out option that is approximately $1.5 per peak watt or $13,600 on a 9KW system. This lease is offered only to Sun Tech dealers. Solar Universe is the only dealer locally offering this lease.

In 2010, Solar Leasing of California introduced their ten year lease. It differed from the other leases by offering the following:
1. Multilple down payment options
2. Options of 10,12,and 15 yr leases terms.
3. A very attractive Pre Paid lease.
4. Premium German Equipment
5. 100 % offset of bill is typical.
6. Certified contractors.
7. Payments typically lower than your current average electric bill.
8. The most generous production guarantee on the market.
9. The lowest credit requirements on the market.
10. An actual buyout that is guaranteed not to exceed the Stated amount. This is normally a very reasonable number.
11. Ground mounts are also approved for leases.

There are many other benefits to this lease. Nova West Solar has been awarded the exclusive rights to the Solar Leasing of California lease in the Central Valley of California.