Solar lease is basically leasing the solar system itself from a third party. The electricity bill goes down significantly – up to 95%- due to the solar production. But the homeowner pays a monthly amount for the equipment lease. The combination of the new electric bill and the lease payment is usually 10-25% less than the bill before solar.
PPA stands for Power Purchase Agreement. In this case, the system is owned by third a party, just like with the solar lease. Then the system owner sells the power that the solar system produces to the homeowner at a cheaper rate than the utility company. The combination of the new electric bill after solar and the monthly PPA payments can be up to 25% less than the homeowner’s current bill. Many companies use the “lease” terminology for PPAs as well, so as not to confuse the clients.