[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/jamarpower.com\/solar-power\/ppa-lease-buying\/#BlogPosting","mainEntityOfPage":"https:\/\/jamarpower.com\/solar-power\/ppa-lease-buying\/","headline":"Compare Solar Lease vs Buy vs PPA [2026]","name":"Compare Solar Lease vs Buy vs PPA [2026]","description":"[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”||7px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700|||||||” header_2_text_align=”left” header_2_text_color=”#f06b39″ header_2_font_size=”36px” header_2_line_height=”1.1em” z_index_tablet=”500″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” global_colors_info=”{}”]Solar PPA vs Lease vs Buy The Pros & Cons Of Each When […]","datePublished":"2019-07-10","dateModified":"2026-02-09","author":{"@type":"Person","@id":"https:\/\/jamarpower.com\/author\/jamarpower\/#Person","name":"Phil Edwards","url":"https:\/\/jamarpower.com\/author\/jamarpower\/","identifier":2,"description":"Phil Edwards is President of Jamar Power Systems. With over 40 years of electrical contracting experience, his companies have wired over 30,000 housing units, including 1000's of residential solar installations. His company is a member of WECA and BIA.","image":{"@type":"ImageObject","@id":"https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/Phil-Edwards-small-profile-image-96x96.png","url":"https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/Phil-Edwards-small-profile-image-96x96.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Jamar Power Systems","logo":{"@type":"ImageObject","@id":"https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/02\/Jamar-Power-Systems-Santee-CA-Logo-geo.jpg","url":"https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/02\/Jamar-Power-Systems-Santee-CA-Logo-geo.jpg","width":1088,"height":217}},"image":{"@type":"ImageObject","@id":"https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/2.3-01-1080.jpg","url":"https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/2.3-01-1080.jpg","height":608,"width":1080},"url":"https:\/\/jamarpower.com\/solar-power\/ppa-lease-buying\/","about":[{"@type":"Thing","@id":"https:\/\/jamarpower.com\/category\/solar-power\/","name":"Solar Power","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Photovoltaic_system","http:\/\/www.wikidata.org\/entity\/Q1897785"]}],"wordCount":5387,"articleBody":"\t\t\t\t\t[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”||7px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700|||||||” header_2_text_align=”left” header_2_text_color=”#f06b39″ header_2_font_size=”36px” header_2_line_height=”1.1em” z_index_tablet=”500″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” global_colors_info=”{}”]Solar PPA vs Lease vs BuyThe Pros & Cons Of EachWhen it comes to going solar in San Diego, there are several ways to get the job done.While the passage of HR1 (The One Big Beautiful Bill) on December 31, 2025, terminated traditional federal solar tax credits, Jamar Power Systems has developed new pathways to ensure you still maximize your savings.Whether you choose a traditional purchase or our new Energy Savings Agreement (ESA), we have the expertise to guide you to the right financial choice for your home.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ custom_padding=”17px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-ppa.png” alt=”Solar power purchase agreement definition” title_text=”Solar power purchase agreement definition” _builder_version=”4.16″ width_tablet=”” width_phone=”” width_last_edited=”on|tablet” max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.19.3″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” global_colors_info=”{}”]Solar PPA (power purchase agreement)The solar PPA company pays for the system, installs it, and connects it to the home and utility company.The homeowner gets solar energy at a stated fixed price per kilowatt-hour (kWh) for a stated amount of time.The PPA’s price per kWh amount should be less than what you’re currently paying for utility company electricity.For more information, see our Solar PPA article or visit the EPA’s website on solar power purchase agreements.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-lease.png” alt=”solar lease icon” title_text=”solar lease icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” global_colors_info=”{}”]Leasing Solar PanelsThe solar leasing company pays for the system, installs it, and connects it to the home and utility company.In a solar lease, the homeowner is renting the solar energy equipment for a fixed monthly payment.In exchange, the homeowner receives all electricity the system produces.\u00a0The solar lease payment should be less than the homeowners current average electric utility bill, so savings starts on day one.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/whats-the-difference-between-solar-ppa-and-lease.png” alt=”whats the difference between solar ppa and lease icon” title_text=”whats the difference between solar ppa and lease icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” global_colors_info=”{}”]What’s the difference between a solar lease and PPA?Tthey both allow you to go solar for $0 down. In the past, these were popular for homeowners who couldn’t use tax credits. Today, they have been evolved into a much better model.How a Solar Lease WorksWith a traditional lease, you pay a fixed monthly “rent” to use the solar equipment. Because federal tax credits are no longer available to homeowners under HR1, the leasing company uses specialized commercial incentives to keep your payments low.How a Solar PPA WorksWith a PPA, you don’t pay for the equipment; you pay for the power it produces at a set rate per kilowatt-hour (kWh), which is lower than the utility\u2019s rate.The New Standard: The Energy Savings Agreement (ESA)At Jamar, we have moved beyond the “forever lease.” Our Energy Savings Agreement (ESA) is a “prepaid-style” transitional ownership model.The 40% Advantage: We leverage specialized incentives to reduce your system cost by up to 40%.Ownership in 5 Years: Unlike a 25-year lease, our ESA automatically transfers full ownership of the Enphase equipment to you after just 5 years.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/pre-paid-solar-lease.png” alt=”pre-paid solar lease icon” title_text=”pre-paid solar lease icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” global_colors_info=”{}”]Pre-Paid Solar LeaseThe solar pre-paid lease usually requires a $1,000 down payment, and then a single payment after installation and the system is operating with no more payments due after that.The pre-paid solar lease has all the same features as a standard solar lease except the payment structure.The pre-paid solar lease will generate the MOST SAVINGS\u00a0for its term of years than any other type of solar lease or PPA.Only a buying a system produces greater savings than a pre-paid lease over the same number of years, and even then it depends on the financing instrument of the purchase.The pre-paid solar lease can be the perfect choice for a recently retired couple whose income is non-taxable, which prevents them from using the solar tax credit, but they would still like to significantly reduce their electricity costs over the next 20 to 25 years.\u00a0 The pre-paid solar lease usually provides people with non-taxable income with the most significant savings potential of all solar financing choices.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-loan.png” alt=”solar loan icon” title_text=”solar loan icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” global_colors_info=”{}”]Solar LoanWith the expiration of federal solar tax credits, the specialized “solar loan” products of the past have been phased out.Today, homeowners are successfully utilizing traditional financing paths\u2014specifically Home Equity Loans and Home Equity Lines of Credit (HELOCs)\u2014to secure their energy independence.These options make owning your solar power system more accessible than ever.With the same ease of entry as a lease or PPA, you can own your system outright, which typically results in the most significant long-term savings.Full Ownership: When your home equity loan or HELOC is paid in full, you own the system free and clear. From that point on, all the electricity it produces is 100% free!40+ Year Lifespan: High-quality solar power systems are designed to last 40+ years, providing decades of value.Maximum Flexibility: Owning your system provides the most significant financial return over time and offers the most flexibility when it comes time to sell your property.Simplified Process: Since the termination of federal tax credits by HR1, you no longer have to worry about complex tax filings or “bridging” a refund. Your investment is straightforward and built into your home’s equity.[\/et_pb_text][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” global_colors_info=”{}”]Solar loan on property taxes (PACE loans)In California and some other states, some counties have made \u201cproperty assessed clean energy (PACE)\u201d loans available.PACE loans apply the loan and interest to your property taxes. These are public-private financing collaborations.These PACE loans are easier to qualify for because they usually don\u2019t take customer FICO scores into account. Instead, these PACE loans are based primarily on the available equity in the property.Most PACE loans only credit requirements are home equity, no bankruptcy in the last two or three years, and no missed mortgage payments over the previous two or three years.Of course, these PACE loans have higher costs than solar loans or home equity loans, which have additional credit qualifying.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ custom_padding=”||10px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/pay-cash-for-solar-1.png” alt=”pay cash for solar icon” title_text=”pay cash for solar icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Buying Solar with CashNot too many systems get paid with money from checking or savings accounts, but if you’ve got it, solar power puts it to good use.Investing money in a solar power system for your home or business usually comes with excellent double-digit returns on investment (ROI).The majority of cash deals in solar usually involve the funds coming from a home equity loan or line of credit.**Note that these two options usually provide the lowest cost financing options for purchasing.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px||0px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/features-and-benefits-of-solar-ppa-lease-and-purchase.png” alt=”icon for features and benefits of solar ppa lease and purchase” title_text=”icon for features and benefits of solar ppa lease and purchase” align=”center” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_text_align=”center” header_2_font=”|700||on|||||” header_2_text_align=”center” header_2_text_color=”#f06b39″ header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|||on|||||” header_3_text_align=”left” header_3_font_size=”25px” custom_padding=”3px|||||” global_colors_info=”{}”]Comparisons of Solar PPA, Lease, and LoanChoose Your Power\u00ae[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-contract-term.png” alt=”solar contract term icon” title_text=”solar contract term icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Length of the solar contract termHome equity loan or line of credit = 1 to 30 years, usually have best interest rates, check with your bank or credit union.PPA = usually 20 to 25 yearsLease = usually 20 to 25 years[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/monthly-solar-payment.png” alt=”monthly solar payment icon” title_text=”monthly solar payment icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Monthly solar paymentChoose Your Power\u00aeHome Equity Loan: The homeowner owns the solar energy system and makes a fixed monthly payment to their bank or credit union.Since there is no longer a federal tax credit to “bridge,” this is a straightforward, single-payment structure. The amount of energy produced has no impact on the monthly payment.PPA: The homeowner pays a stated price per kilowatt-hour (kWh) for the electricity produced. The monthly payment usually fluctuates based on exactly how much energy the system produced that month.Lease: The homeowner pays a fixed and level monthly rental price for the solar equipment. Or in a pre-paid lease, you make a single payment and save 40 percent or more over the life of the lease.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-down-payment.png” alt=”solar down payment icon” title_text=”solar down payment icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Down paymentLoan = zero, almost all solar loans are zero money down but include an option to put money down to reduce the monthly payment if the customer wishes to do so.Any down payment will also reduce the total interest paid and produce additional savings to the customer.PPA = zero, most PPA\u2019s do not require any down payment, though the host customer (you) may have an option to place a down payment to make the monthly payments lower.Lease = zero, solar leases do not require any down payment, though most do permit that option if the customer wishes to reduce monthly payments and save money over the life of the contract.Pre-paid lease = usually a $1,000 down payment is required to start the project.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-payment-escalator.png” alt=”solar payment escalator icon” title_text=”solar payment escalator icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Payment EscalatorA payment escalator is a clause that allows the monthly payment to go up every year, usually at a rate of 2.9% or more.Home Equity Loan: No. These typically feature fixed monthly payments for the life of the loan.ESA: No. We do not use escalators in our ESA program.PPA \/ Lease: Yes, many traditional contracts include an escalator. We recommend reading these carefully, as they can significantly reduce your long-term savings and complicate a future home sale.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-energy-production-guarantees.png” alt=”solar energy production guarantees icon” title_text=”solar energy production guarantees icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Solar Energy Production GuaranteesOwnership (HELOC\/Cash): While the lender provides no production guarantee, your system is fully protected by the Enphase 25-year manufacturer warranties on panels and microinverters.ESA \/ PPA \/ Lease: Includes a guaranteed kilowatt-hour (kWh) production schedule for each year of the contract term. If the system fails to hit these targets, the provider must issue a credit or fix the system.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-energy-true-up.png” alt=”solar energy true-up icon” title_text=”solar energy true-up icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Annual Energy Production True-UpAn annual \u201ctrue-up\u201d in a solar energy contract means that annual adjustments must be made to reflect whether or not the solar energy system produced more or less energy than was projected and guaranteed in the contract for that year.Ownership: Does not apply.Lease: Yes, these usually include an annual “true-up” or performance adjustment to ensure the system is producing what was guaranteed.ESA \/ PPA: Typically not needed if you are paying monthly for actual production, though level-payment PPAs will include an annual adjustment.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-monitoring.png” alt=”solar monitoring phone app icon” title_text=”solar monitoring phone app icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Monitoring Energy PerformanceOwnership: The homeowner is responsible for monitoring via the Enphase App. Jamar also offers a “Real-time Solar Monitoring & Alert Service” for professional 24\/7 oversight.ESA \/ PPA \/ Lease: The finance company monitors the system 24\/7 to protect their investment, and the homeowner is also provided with app access to track production and battery health.We provide a “Real-time Solar Monitoring & Alert Service” to San Diego CA area homeowners who would prefer that solar professionals are watching their system 24\/7.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/solar-panel-maintenance-and-repairs.png” alt=”solar panel maintenance and repairs icon” title_text=”solar panel maintenance and repairs icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Warranties & RepairsOwnership: The homeowner is responsible for making warranty claims with manufacturers like Enphase. Jamar assists our customers with these claims and provides repair services throughout San Diego.ESA \/ PPA \/ Lease: The provider is responsible for all maintenance and repairs. Our ESA includes the Platinum Protection Suite, covering everything from performance to roof penetrations.We also provide solar panel repair service and warranty repairs throughout San Diego County.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/ability-to-buy-the-solar-system-later.png” alt=”ability to buy the solar system later icon” title_text=”ability to buy the solar system later icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Ability to purchase the system laterLoan = you own the system once the loan gets paid in full.Most solar loans have no pre-payment penalty so you can pay off the amount due and own the solar power system free and clear at any time after it starts.PPA = most PPA\u2019s include an option for the homeowner to purchase the system after a stated number of years (usually 7+ years for tax credit and depreciation reasons), or at the end of the contract term for either a stated price or an appraised value at the time of desired purchase.Lease = most leases include the same option-to-buy as the PPA described above.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/what-happens-to-solar-system-when-you-sell-your-home.png” alt=”what happens to solar system when you sell your home icon” title_text=”what happens to solar system when you sell your home icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]What happens when you sell your home?Most solar finance contracts include an option to transfer the agreement to the new buyer of the property (on approved credit) or to purchase the system outright at a value to be appraised at that time.Loan = must buy out and pay off the loan upon the sale of the home.PPA = usually includes both qualify to transfer and buy out options, but usually only after 7+ years due to tax credit and depreciation issues. See the contract for details.Lease = usually includes both qualify to transfer and buy out options, but also usually only after 7+ years due to tax credit and depreciation issues. See the contract for details.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/credit-scores-for-solar-lease-ppa-loan.png” alt=”credit scores for solar lease ppa loan” title_text=”credit scores for solar lease ppa loan” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]What happens when you refinance your home with a solar lease or PPA?Loan = usually you must pay off the loan upon any home refinancing.PPA = contract places a lien against your property and files it with your County Recorder\u2019s Office so you will need written clearance from the solar company to refinance your property loans.Lease = also places a lien on your property, and the same process as described above for a PPA usually applies.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/what-credit-score-is-needed.png” alt=”what credit score is needed icon” title_text=”what credit score is needed” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]What credit rating is required?Home equity loan = usually a FICO score of 640 or higher is required, but it varies widely. Contact your local credit union, bank, or lender.\u00a0Home equity loans are one of the best ways to finance a solar energy system is to take out a home equity loan or line of credit. These are typically there lowest cost loans available.PACE loan on property taxes = most PACE loans only require home equity, no bankruptcy in the last two or three years, and no missed mortgage payments over the previous two or three years.ESA \/ PPA = credit ratings vary but common to see credit scores of 640 or higher needed to get approved for a solar PPA.Lease = credit ratings vary but common to see credit scores of 640 or higher needed to get approved for a solar lease.Credit qualifications vary significantly by the finance company, but the FICO scores required usually start from the low 600\u2019s.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/ITC-credits-for-solar-energy.png” alt=”federal investment tax credits for solar energy systems” title_text=”federal investment tax credits for solar energy systems” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.5″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Federal Investment Tax Credit (ITC) for Income TaxesImportant Update: Under the regulations of HR1 (The One Big Beautiful Bill), the federal Solar Investment Tax Credit (ITC) officially expired on December 31, 2025.Previously, homeowners could claim a percentage of their system cost on their federal returns.In the current 2026 market, those savings have been replaced by proprietary programs like our ESA, where financial partners capture available clean-energy incentives at the corporate level and pass those savings directly to you through lower monthly rates and “pre-paid” style discounts.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/jamarpower.com\/wp-content\/uploads\/2019\/07\/SRECs.png” alt=”renewable energy certificates icon” title_text=”renewable energy certificates icon” _builder_version=”4.16″ max_width=”35%” max_width_tablet=”50%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]Solar Renewable Energy Certificates (SRECs)Loan = the homeowner receives all federal and state solar renewable energy certificates (SRECs are not currently available in California).PPA = the PPA company will receive all federal and state solar renewable energy certificates (SRECs are not currently available in California).Lease = the leasing company will receive all federal and state solar renewable energy certificates (SRECs are not currently available in California).For more information, see the Environmental Protection Agency (EPA) website on renewable energy certificates.[\/et_pb_text][et_pb_text _builder_version=”4.16″ header_font=”||||||||” header_2_font=”|700||on|||||” header_2_text_align=”left” header_2_font_size=”27px” header_2_line_height=”1.1em” header_3_font=”|600||on|||||” header_3_font_size=”23px” header_3_line_height=”1.1em” custom_padding=”3px|||||” global_colors_info=”{}”]How To Select A Solar InstallerNow that you know everything you need to make an informed decision about how to finance your solar energy system, the next step is to interview solar companies. We’ve put together a 26-point checklist article on “How to Select a Solar Installer.”\u00a0[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” header_4_font=”|700||on|||||” header_4_text_align=”center” header_4_text_color=”#f06b39″ header_4_font_size=”22px” global_colors_info=”{}”]FREE Solar AnalysisReady to find your path to independence?The 2026 Energy Savings Agreement is available for residential solar throughout San Diego County.Schedule a consultation and free quote directly on our call calendar here.Or call the Jamar team at (619) 448-7770 to schedule your custom savings analysis.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.5″ text_line_height=”0.9em” header_2_text_color=”#f06b39″ header_2_font_size=”28px” header_3_font=”|800|||||||” header_3_text_align=”left” header_3_text_color=”#1890DD” header_3_font_size=”23px” header_3_line_height=”1.2em” header_4_font=”|700|||||||” header_4_text_color=”#F06B39″ header_4_font_size=”23px” header_4_line_height=”1.2em” header_3_text_align_tablet=”center” header_3_text_align_phone=”center” header_3_text_align_last_edited=”on|desktop” global_module=”49639″ global_colors_info=”{}”]Related articles:FREE Solar Calculator2026 Federal tax credit changes for solar & solar batteriesSolar panel monitoring serviceSolar panel repair serviceHow solar batteries workBattery storage system fundamentalsPeak Shaving: Invest in your home\u2019s energy future for significant ROIWhy a battery makes financial sense with solar panels now under NEM 3.0How long will a solar battery last during a power blackout?How many batteries are needed to power your home?How many years do solar batteries last?Tesla Powerwall batteriesSolar Battery or generator for emergency backup power?How to check if your solar panels are charging the solar batteryComplete Guide to Solar PPA, Lease vs Buying SolarHow to choose a solar installerGet a FREE solar anaylsis to see if solar energy or a battery is right for your home  [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]                          Author Recent Posts   Phil EdwardsPresident at Jamar Power SystemsPhil Edwards is President of Jamar Power Systems. With over 40 years of electrical contracting experience, his companies have wired over 30,000 housing units, including 1000's of residential solar installations. His company is a member of WECA and BIA.  Latest posts by Phil Edwards (see all)\t\t\t\t\t\t\t\t\tSolar Battery + EV Charging Station + Solar PV = The Dream Team - April 7, 2026\t\t\t\t\t\t\t\t\t\t\t\t\t2026 Federal Tax Credit Changes For Solar Energy Systems - July 8, 2025\t\t\t\t\t\t\t\t\t\t\t\t\tHow Solar Batteries Work - March 4, 2024\t\t\t\t  \t\t\t\t"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Solar Power","item":"https:\/\/jamarpower.com\/solar-power\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Compare Solar Lease vs Buy vs PPA [2026]","item":"https:\/\/jamarpower.com\/solar-power\/ppa-lease-buying\/#breadcrumbitem"}]}]