How does an operating lease differ from a PPA?

With an operating lease, you pay a fixed monthly rent ($/mo) in return for use of the system. With a PPA you pay a fixed price per kWh for power you use ($/kWh).

With both options, you will reduce your monthly energy bill and you don’t pay for the cost of the solar panels or installation. However, this means you are not the owner of the solar system and therefore you may not be able to take advantage of tax benefits. 

With a solar lease, you pay a flat fee each month. The payment amount will be outlined in your lease contract. This payment will be less than your utility bill before you started leasing solar panels.

A solar PPA works more like your utility bill, where you pay for each kilowatt hour (kWh) of solar energy you use. Your solar PPA bill will fluctuate depending on how much energy the solar panels produce. 

A PPA has the potential to save you more money over the entirety of your contract because your monthly payments are directly related to how much energy the solar panels produce.