Frequently Asked Questions
Find answers to common questions about Help Solar Exit, the review process, and solar contracts.
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Understanding Solar Contracts
Solar contracts come with terminology that can be confusing. Here's a quick reference guide to the most common terms.
Solar Lease
An agreement where a third-party company owns the solar panels on your roof and you pay a monthly fee to use the electricity they produce. You don't own the equipment, and the lease typically lasts 20–25 years.
Solar Loan
A financing arrangement where you borrow money to purchase a solar system. You own the panels (or will once the loan is paid off), but you're responsible for monthly loan payments, which may be separate from your energy savings.
PPA (Power Purchase Agreement)
A contract where a third-party company installs and owns the solar panels, and you agree to buy the electricity they generate at a set rate per kilowatt-hour. The rate may include an annual escalator clause.
Escalator Clause
A provision in a solar contract that increases your payment by a fixed percentage (often 1–3%) each year. Over a 25-year term, this can significantly increase your total cost — sometimes beyond what you'd pay your utility company.
Solar Lien
A legal claim placed on your property related to a solar financing agreement. A lien can complicate or delay selling your home until the solar contract is resolved or transferred.
Contract Assumption / Transfer
The process of transferring a solar contract to a new homeowner when you sell your property. Not all buyers are willing or able to assume a solar contract, which can complicate real estate transactions.
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