Lease or PPA? Here's which $0-down path fits your home.
Both options cost nothing upfront. Both include maintenance. Both are designed for the 2026 Texas solar landscape. The difference is how you pay: fixed monthly (lease) or per-kWh produced (PPA). Here's what most Texas homeowners should know.
Why these two options matter more in 2026
The federal residential 30% Investment Tax Credit for homeowners expired July 2025. For homeowners, that removes a major chunk of the direct-ownership economics. But the 30% ITC still applies to systems owned by a third party — like a lease or PPA provider — who then passes those savings to you in the form of lower monthly payments or lower per-kWh rates.
Translation: in 2026, leases and PPAs are often the most cost-effective residential path, because the tax credit is still being captured by the system owner and flowing through to you.
How each works
Solar Lease
What you pay: A fixed monthly lease payment, regardless of production.
What you get: Unlimited solar electricity the system produces, plus maintenance & monitoring.
Best if: You want predictable budget-friendly monthly payments and production-risk protection.
- Same lease payment every month (with optional escalator of 0–2.9%)
- Production guarantee — if system underperforms, you get a credit
- Maintenance included for full term
- Typical term: 20–25 years
- End of term: buy system, renew, or have it removed
Power Purchase Agreement (PPA)
What you pay: A per-kWh rate on the electricity your system produces.
What you get: A solar rate lower than your current utility rate, plus maintenance & monitoring.
Best if: You want to see direct correlation between production and what you pay.
- Pay only for kWh the system actually produces
- Rate locked in below your utility baseline
- Maintenance included for full term
- Typical term: 20–25 years
- End of term: buy system, renew, or have it removed
Side-by-side comparison
| Feature | Lease | PPA |
|---|---|---|
| Upfront cost | $0 | $0 |
| Monthly payment basis | Fixed | Per kWh produced |
| Bill predictability | Highest | Moderate (tracks production) |
| Production risk | Owner (guaranteed) | Owner (you pay only for what's made) |
| Maintenance | Included | Included |
| Monitoring | Know TrueUp® included | Know TrueUp® included |
| Escalator | 0–2.9% typical | 0–2.9% typical |
| End of term options | Buy / renew / remove | Buy / renew / remove |
| Home sale transfer | Assumable by buyer | Assumable by buyer |
Common questions
Does a lease or PPA hurt my home sale?
No — when structured correctly, both are transferable to the buyer. Buyers typically see it as a plus: lower electric bills from day one with no capex. Our team handles transfer paperwork at closing. Over 90% of our lease/PPA transfers close without issue.
Who owns the solar panels?
A third-party system owner (the lease/PPA provider) owns the panels for the duration of the term. They claim the 30% ITC and depreciation, which is how they're able to offer $0-down with lower-than-utility pricing.
What happens if I move before the term ends?
Three options: (1) transfer the agreement to your home's buyer — most common, (2) pay the remaining buyout to own the system, or (3) have the system removed (rare). We support all three paths.
Can I buy the system outright later?
Yes. Leases and PPAs both include buyout options — typically at specific year milestones (e.g., years 6, 10, 15) plus at end of term. Buyout prices are pre-disclosed in your contract.
What about maintenance if something breaks?
Covered. The system owner is responsible for maintenance, repairs, and monitoring during the term. Hart Beat Energy provides the maintenance under most Texas lease/PPA programs we sell.
Still not sure which fits?
Get a side-by-side lease + PPA + loan comparison for your specific home — free, no obligation.