A solar Lease and a Power Purchase Agreement are two flavors of the same thing: Third Party Ownership, or TPO. A provider owns the hardware. You pay to use clean power your roof produces. The question is how you pay.
What they have in common
- Zero money down, zero install cost
- Third-party owns the panels, inverters, and monitoring
- Provider carries the production guarantee
- Provider handles repairs and component replacement for the full term
- Transfers cleanly to the next owner when you sell
- Term typically runs 20 to 25 years
The headline
A lease is a fixed monthly payment. A PPA is a variable monthly bill based on actual production. Everything else is effectively the same.
Where they differ
| Question | Solar lease | Power Purchase Agreement |
|---|---|---|
| Monthly bill | Fixed amount | Variable, per kWh produced |
| If a month is cloudy | Payment unchanged | Bill drops |
| If a month is sunny | Payment unchanged | Bill rises (but still below utility rate) |
| Budget predictability | Maximum, same number every month | Tighter in winter, looser in summer |
| Annual escalator | Small, capped | Small, capped |
| Where you see it most | Virginia | Maryland |
Why your state decides
State utility commissions and state incentive programs shape what Third Party Ownership structures are viable. Providers tune their product to match what each state approves. That is why our Virginia program is a solar lease and our Maryland program is a PPA, even though homeowners in both states get the same benefits: zero money down, a rate below the utility, provider-side maintenance and production guarantee.
Which one applies to you
Pick your state to see the specific program we offer there.
Virginia Solar Lease
Fixed monthly payment, zero down, below your Dominion bill.
See the Virginia program MarylandMaryland Solar PPA
Per-kWh rate below BGE, Pepco, or Potomac Edison. Zero down.
See the Maryland programPrefer to own instead?
Third Party Ownership is not for everyone. If you would rather own the system outright, you have two more paths.
- Cash purchase. You buy the system up front and keep every benefit of ownership.
- Solar loan. You finance the purchase and own the system from day one.
Both paths are available in Virginia and Maryland. We walk through all three during your Solar Reality Check and recommend the one that fits.
We do not make more money when you pick TPO. Our reps are salaried. They recommend the path that fits your home, your finances, and your timeline. Nothing else.