Solar Lease vs. Solar PPA: Which Model Is Right for Your Business?

Both Solar Lease and Solar PPA offer zero-upfront-cost solar energy for your facility. But there are important differences in structure, ownership, and long-term value. Here is a clear comparison to help you decide.

The Core Difference

Under a Solar PPA, you buy the electricity produced by the system at a discounted rate — you never own the panels. Under a Solar Lease, you pay a fixed monthly amount to use the system, and at the end of the lease term, ownership of the entire solar power plant transfers to you. Both models require zero capital investment upfront.

When to Choose a PPA

A PPA is ideal if your primary goal is immediate savings on your electricity bill with zero involvement in system ownership or maintenance. It is the simplest model — you just buy cheaper power. This works well for tenants, businesses with short planning horizons, or organisations that prefer to keep solar assets off their balance sheet.

When to Choose a Lease

A Solar Lease is the better option if you want to eventually own the solar power plant. After the lease term (typically 5 to 25 years), the system becomes your asset — meaning you generate free electricity for the remaining 10 to 15 years of the panels’ lifespan. This is ideal for property owners with a long-term view who want to maximise total savings.

Key Takeaway

There is no wrong choice — both models deliver immediate savings and clean energy. The decision comes down to whether long-term asset ownership matters to your business strategy. Three Eight Six can help you evaluate both options with a free assessment.

Ready to explore solar for your facility? Contact Three Eight Six for a free assessment.