Defined term
Solar contract buyout
A solar contract buyout is a transaction permitted by a lease or power purchase agreement in which specified rights or system ownership are acquired for a contract-determined amount and under stated conditions.
Also known as solar lease or PPA buyout
economics · Concept code GS-CONCEPT-087 · Last verified August 20, 2026
Definition and boundaries
Definition
A solar contract buyout is a transaction permitted by a lease or power purchase agreement in which specified rights or system ownership are acquired for a contract-determined amount and under stated conditions.
Applicable jurisdiction: US; contract and state-law treatment vary
Definition claim verification: Verified August 20, 2026
In plain language
Use Solar contract buyout only after the cash-flow perspective, timing, contract structure, included costs, and omitted items are made explicit.
What it is not
It is not an automatic right, a guaranteed fair-market price, or the same transaction as assigning the contract to a home buyer.
Decision context
Why it matters
Eligibility date, price formula, taxes, valuation, liens, transfer, warranties, equipment condition, remaining obligations, and title documents come from the contract and applicable law.
Applicable jurisdiction: US; contract and state-law treatment vary
Decision-context claim verification: Verified August 20, 2026
Information boundary
This page provides general educational context, not a site design, production guarantee, utility determination, contract interpretation, legal opinion, tax conclusion, or individualized financial advice. Verify property, equipment, utility, jurisdiction, program, and agreement details before acting.
Concept relationships
Affects
- Residential solar system leasePublished conceptSolar contract buyout can affect how Residential solar system lease is evaluated
- Residential on-site solar power purchase agreementPublished conceptSolar contract buyout can affect how Residential on-site solar power purchase agreement is evaluated
Primary sources
- U.S. Department of Energy: A Consumer's Guide to Buying a House with Solar Panels
Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- California Public Utilities Commission: Solar Consumer Protection Guide
Revision Guide Version 4 (published 2025; exact publication date unavailable) · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
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