How Solar Leases Help You Lock in Savings

Beat Rising Energy Bills with Predictable Solar Savings

What if you could lock in your electricity rate for the next 20 years? Not just protect yourself from increases, but know exactly what you'll pay per kilowatt-hour, month after month, year after year. That’s exactly what you can do with a solar lease. A solar company installs panels on your roof at no cost to you, maintains the entire system, and you get solar power at a predictable rate.  No equipment to buy. No maintenance to worry about. Just clean energy at a predictable price.

You might see these arrangements called Power Purchase Agreements (PPAs) or Energy Service Agreements (ESAs). The legal structure varies, but for California homeowners, the experience is the same: you get solar power savings without ownership responsibilities.

In this blog post we will focus on zero-down monthly solar leases, where you get all the benefits of solar panels without the burdens of ownership. 

What Is a Solar Lease and How Does It Work?

A solar lease is an agreement where a third-party provider installs, owns, and maintains solar panels on your property. You don't buy the system. Instead, you access the solar power it generates while the provider handles everything else.

Here's what that means in practice:

• Panels installed and owned by the solar company – The solar company is the legal owner of the equipment
• Zero upfront investment – No $20,000 to $40,000 down payment required
• Full maintenance included – The  solar company handles monitoring, repairs, and performance issues
• Stable, predictable rates – Your energy costs stay consistent over the life of the contract

Key difference from buying outright: You don't own the panels or claim tax credits, but you avoid the massive upfront cost and all maintenance responsibilities. Learn more about all your solar financing options.

Key difference from prepaid leases: With a zero-down solar lease, you pay monthly with no large upfront payment. Prepaid leases require significant cash upfront but offer different long-term savings. We'll cover prepaid options in detail in a future post.

For California homeowners, solar leases typically run 20 to 25 years. During that time, the provider guarantees your system will perform as promised, and you get solar power without the complexity of ownership.

Why Leases Are More Attractive Now Than Ever

Electricity prices in California have been climbing faster than nearly anywhere else in the country. Between 2011 and 2023, rates jumped almost 60%, and PG&E alone pushed through four separate hikes in 2024. That’s hundreds of extra dollars per household in just one year.

At the same time, the rules around solar incentives are changing. Homeowners who buy a system outright after December 31, 2025 lose the federal tax credit that helped offset the cost of buying panels. So now purchasing a system means the full $25,000 to $40,000 price with no federal help. But the commercial tax credit continues through December 31, 2027. This means solar companies can claim the credit when they install leased systems and those savings get built into the rates they offer customers. 

Instead of feeling stuck between rising bills and a $30,000 purchase, you have a third choice: switch to solar now with no upfront cost and predictable rates for decades. Check out all the benefits of solar energy for your home.

Zero-Down Solar Lease Benefits

A solar lease gives you all the benefits of solar without the headaches.

No Upfront Cost

Buying panels outright can run $20,000 to $40,000. With a lease, that cost drops to zero. It opens the door for families who want clean energy without draining their account or taking on a large loan payment. You lock in predictable rates for 20 to 25 years while utility costs keep climbing for decades of savings. 

Hassle-Free Maintenance

Every solar system needs care to stay at peak performance. With a lease, the solar company handles installation, monitoring, and any repairs. If something stops working, you make a call and they fix it. You're not researching warranties, finding qualified technicians, or dealing with manufacturers. Also, most leases include performance guarantees, so you know exactly what to expect from your system.

Built-In Flexibility

Life changes. You might decide to sell your home or simply want to buy out the system down the road. Leases are designed with those options in mind, so you aren’t locked into a corner. Most contracts include options so you can buy out the system after a set period or easily transfer the lease to the next owner if you decide to sell your home. 

Doesn't Impact Your Borrowing Power

Unlike a solar loan, a lease doesn't add debt to your credit profile. It's structured more like a service than a loan, which means it typically won't affect your debt-to-income ratio. If you're planning to refinance your mortgage, buy a car, or make another major purchase that requires borrowing, a lease keeps your credit capacity available for those needs.

Why Homeowners Choose Citadel

We’re not new to this. For more than 30 years Citadel has been protecting California homes with durable roofs, and helping families power those homes with solar for over 20 years. Over the years, we earned over 1000 5-star reviews from happy customers. Our team guides you through every step of the solar lease process with the kind of straightforward advice you'd expect from a company that's been serving California since the beginning. Learn more about our team. 

Ready to Lock in Your Savings?

Your utility bill will always move in one direction: up. A solar lease gives you a different option; the rate you agree to today is the rate you’ll see tomorrow, next year, and long after. 

With Citadel, you can take the uncertainty out of energy and replace it with something better: a system designed to work for your home, installed by a company that’s been serving California families for decades. Schedule a free consultation with Citadel today and learn how a solar lease is perfect for your home and your future.

FAQs

What are the benefits of a solar lease?

Predictable energy costs, zero upfront cost, maintenance included, and flexibility if you sell your home.

Is a solar lease truly zero down?

Yes. The solar company installs and owns the system at no cost to you upfront.

How does a solar lease save money over time?

By locking in a fixed rate, you avoid future utility rate hikes and keep your expenses predictable.

Do I still qualify for incentives with a solar lease?

The solar company claims the federal tax credit, and those savings are reflected in the lower rates they offer you.

What happens if I want to sell my home?

Most leases can transfer to the new owner, or you may have the option to buy out the system.

Can I buy out my lease contract early?

Yes, most lease agreements include buyout options, typically available after a set period (often around 6 years, though this varies by provider). You can also usually buy out the system at the end of your lease term.