A Homeowner’s Guide to Solar Financing: Leases, Loans and PPAs

November 28, 2018

by Nate Hausman, CESA

This guide aims to help homeowners navigate the complex landscape of residential solar photovoltaic (PV) system financing. The guide describes three popular residential solar financing choices – leases, loans, and power purchase agreements (PPAs) – and explains the advantages and disadvantages of each, as well as how they compare to a direct cash purchase. It clarifies key solar financing terms and provides a list of questions homeowners should ask before deciding if and how to proceed with installing a solar system. The full guide is available at the link to the right.

In addition to this publication, CESA has worked with state agencies in New Mexico, Massachusetts, and New York to develop their own state-specific solar financing guides.

CESA has also published a Spanish translation of this guidebook, “Una Guía Práctica de Financiación Solar Para Dueños de Casa.”

This guide was originally published in February 2015. It was updated in November 2018.