Instead of buying a solar photovoltaic (PV) system, you can lease it through a power purchase agreement (PPA). PPAs are financial arrangements in which a third-party developer owns, operates, and maintains the renewable energy system. Solar power purchase agreements are called SPPAs. Under an SPPA, you agree to site the system on your property and purchase the system’s electric output from the solar services provider.
Leasing a solar power system reduces upfront costs as well as worrying about repairs or maintenance.
As a “host customer,” you would buy the electricity produced by your installed PV system rather than buying the PV system itself. This framework is referred to as a “solar services” model, and organizations who offer SPPAs are known as solar services providers. SPPA arrangements enable the host customer to avoid many of the traditional barriers to the installation and on-going maintenance of an on-site solar system.
PPAs are also available for other types of renewable energy, such as wind or hydroelectric. Such arrangements may be hard to find in your area, however, consumer interest is growing and availability is expected to increase.
Read all about it in Live in a Home that Pays You Back.