Solar provider breakdown: who leases PV systems?

Banks and organizations providing residential solar loans

Curious how solar loans compare to solar leases?

Check out the pros and cons of each

Companies offering solar leases or Power Purchase Agreements (PPAs) are organized in one or more of the following ways:

1. Vertically integrated

   These companies own all the major parts of the solar business, including capital, sales, installation, and after-sales service and maintenance. SolarCity is the best example of a vertically integrated solar company.

2. Solar Financing companies with a preferred network of installers

   These companies use their own capital or source funds from a bank or a private investment fund to offer solar financing programs. They have built a national installer network that offers their financing program exclusively to consumers. Examples of such companies include SunRun, SunEdison, Sungevity. Some solar panel manufacturers are also providing financing using this business model. They include SunPower, Brightlease and CentroSolar.

3. Solar Financing Company

   These are primarily financing companies that any installer can use to offer a solar financing solution to property owners. Companies like Clean Power Finance, Graybar Financial, Tech Credit corp. are examples of this business model.

4. Installers offering proprietary solar leasing/PPA contracts

   Some larger installers have lined up a line of credit at a bank or at a private investment fund. Some even have put their own capital to finance commercial installations. Examples include Amberjack Solar and American Solar Direct.