Nonprofit group Solar United Neighbors published a new report, “PPAs & Solar Leases: A practical guide to understanding third-party solar ownership,” to help consumers navigate these pathways to rooftop solar adoption.
The report highlights how third-party ownership (TPO) models — including power purchase agreements (PPAs) and solar leases — are expanding access to clean energy nationwide. According to the report, TPO financing models account for 45% of U.S. residential solar.
TPO residential projects are often installed with little to no upfront cost for homeowners, and they buy electricity from the array at a lower cost than a utility ratepayer. TPO contracts can be as long as 15 to 20 years.
The TPO provider receives the monetary benefits of an operating array and is responsible its maintenance. With federal policy changes shifting incentives toward commercial ownership, TPO lets homeowners still receive tax credit savings exclusive to commercial projects.
Solar United Neighbors is an organization lowering the financial bar of entry to installing solar. This report defines the style of TPO solar projects available to residential solar, and provides customer testimonials about this style of PV project.
States where third-party solar financing is available. Credit: DSIRE & PV Magazine
