Defined term

Residential solar system lease

A residential solar system lease is an agreement in which a provider owns a system installed at a home and the customer pays scheduled amounts for its use during the contract term.

Also known as solar lease

economics · Concept code GS-CONCEPT-019 · Last verified August 20, 2026

Definition and boundaries

Definition

A residential solar system lease is an agreement in which a provider owns a system installed at a home and the customer pays scheduled amounts for its use during the contract term.

Applicable jurisdiction: US; CPUC examples are California-specific

Definition claim verification: Verified August 20, 2026

In plain language

The provider retains system ownership while the household pays according to the lease schedule. Review transfer, buyout, maintenance, and end-of-term terms in the actual contract.

What it is not

It is not a homeowner-owned purchase or loan, and it is distinct from a PPA because payment is not defined solely as a contracted price for every kilowatt-hour produced.

Decision context

Why it matters

Lease payment schedules, escalators, transfer, buyout, maintenance, and end-of-term terms vary. A lease is distinct from a PPA because payment is not defined solely as a contracted price for each kilowatt-hour the system produces.

Applicable jurisdiction: US; contract and jurisdiction terms vary

Decision-context claim verification: Verified August 20, 2026

Information boundary

This definition is general educational information, not individualized financial or legal advice. Contract terms, disclosures, incentives, and electricity-sale rules require transaction- and jurisdiction-specific review.

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