Leases and PPAs
Solar lease and PPA terms by company: escalators, transfers and buyouts
What Sunrun, Tesla, and the companies now holding SunPower and Sunnova contracts say about yearly price increases, selling your house, and buying the system out. Your own contract decides; this tells you what to look for in it.
Checked November 12, 2026
| Company | Term | Yearly increase | Buyout |
|---|---|---|---|
| Sunrun | 20 or 25 years | 0% to about 2.9% a year; 2.9% is common in recent contracts | Purchase options are written into each contract, usually at fair market value |
| Tesla | 25 years for solar or solar with Powerwall; 12 years for Powerwall only | 3% a year on the new leases | Available after year five, at a price written into the contract |
| SunStrong (former SunPower leases and PPAs) | Usually 20 or 25 years, as in your SunPower contract | As written in your contract; there is no single SunPower escalator | The seller or buyer can buy the system out during a sale; payment must arrive before the buyout completes |
| SunStrong (former Sunnova leases and PPAs) | As in your Sunnova contract, often 25 years | As in your contract | As in your contract; ask SunStrong for a written payoff quote |
| Spruce Power | As in the original contract | As in the original contract | Request a purchase or prepayment price online |
| Palmetto LightReach | 25 years | As written in the contract | Available when you sell; Palmetto's help center explains lease payoff |
What a yearly increase adds up to
Most leases and PPAs raise the payment every year by a fixed percentage, the escalator. EnergySage sees escalators from 0% to about 2.9% in Sunrun's offers; Tesla's 2025 leases use 3%. Here's a $150 first-year payment over 25 years:
| Escalator | Year 1 | Year 10 | Year 25 | 25-year total |
|---|---|---|---|---|
| 0% | $150 | $150 | $150 | $45,000 |
| 1.9% | $150 | $178 | $236 | $56,924 |
| 2.9% | $150 | $194 | $298 | $64,772 |
| 3% | $150 | $196 | $305 | $65,627 |
A lower starting payment with a higher escalator can cost more in the end. Put the offer into the quote checker, which counts every year's payment against what the power would cost from the utility.
Sunrun
One of the biggest lease and PPA companies. It sells directly and through other installers, so the contract may say Sunrun even if another company put the panels up.
- Term
- 20 or 25 years
- Yearly increase
- 0% to about 2.9% a year; 2.9% is common in recent contracts.
- Selling the house
- The buyer signs Sunrun's Transfer of Solar Service Agreement and passes a soft credit check (not needed for prepaid agreements). Sunrun prepares the county notice; after closing, send proof of sale. If the buyer doesn't want the agreement, you can prepay the rest and fold it into the home price.
- Buying it out
- Purchase options are written into each contract, usually at fair market value. You can also prepay the remaining payments.
- At the end
- Renew, upgrade to a new system, or have the system removed at no cost.
- Contact
- servicetransfers@sunrun.com, 1-855-478-6786 ext. 3
Sources: EnergySage: Sunrun lease contracts, what to watch for; Sunrun: a home seller's guide to service transfer; Sunrun: what happens if I move?.
Tesla
Restarted leasing in October 2025. Older Tesla and SolarCity leases and PPAs follow their own contracts.
- Term
- 25 years for solar or solar with Powerwall; 12 years for Powerwall only
- Yearly increase
- 3% a year on the new leases.
- Selling the house
- Start the transfer in the Tesla app, entering the buyer and escrow details. Tesla charges $150 to process a temporary UCC-1 release or subordination for a sale or refinance.
- Buying it out
- Available after year five, at a price written into the contract.
- At the end
- Renew for five years at a new rate, or buy the system at fair market value.
- Contact
- Tesla app: Settings, then transfer system ownership
Sources: Tesla: how leasing solar with Tesla works; Electrek: Tesla's new solar and Powerwall lease terms (2025); Tesla: real estate questions; Tesla: property and title (UCC-1).
SunStrong (former SunPower leases and PPAs)
SunStrong Management took over SunPower's leases and PPAs after SunPower Corporation's 2024 bankruptcy. SunPower Inc., the company using the name today, did not take on any lease, PPA or system installed before September 30, 2024.
- Term
- Usually 20 or 25 years, as in your SunPower contract
- Yearly increase
- As written in your contract; there is no single SunPower escalator.
- Selling the house
- Assignment to the buyer requires a credit check, even if the lease is prepaid. Give 30 days' notice; documents take 7 to 10 business days after credit approval. There's a $300 fee to terminate the UCC filings.
- Buying it out
- The seller or buyer can buy the system out during a sale; payment must arrive before the buyout completes.
- At the end
- As written in your contract.
- Contact
- SunStrong, (833) 514-1858
Sources: SunPower: seller questions about lease assignment and buyout; SunPower Inc.: what the 2024 bankruptcy means for customers; SunStrong Management: contact.
SunStrong (former Sunnova leases and PPAs)
Sunnova filed for bankruptcy in June 2025. Solaris Assets bought most of its assets in September 2025, and SunStrong Management services the systems.
- Term
- As in your Sunnova contract, often 25 years
- Yearly increase
- As in your contract. Sunnova said there were no changes to lease or loan terms in the sale.
- Selling the house
- Handled by SunStrong. Expect a credit check for the buyer and a notice period; ask for the current fee in writing.
- Buying it out
- As in your contract; ask SunStrong for a written payoff quote.
- At the end
- As in your contract.
- Contact
- SunStrong, (833) 514-1858
Sources: Sunnova: restructuring questions for customers; pv magazine USA: Solaris buys Sunnova's assets, SunStrong takes over servicing.
Spruce Power
Owns and services older leases and PPAs first sold by other companies. If your bills come from Spruce, it holds your contract.
- Term
- As in the original contract
- Yearly increase
- As in the original contract.
- Selling the house
- Three options in a sale: assign the lease to the buyer (credit check or identity check required), buy the system, or prepay (no credit check). Give 30 days' notice; documents take 8 to 12 business days after credit approval. Spruce's pages list processing fees from $150 to $550 depending on whether an escrow company handles the sale; ask for the current fee.
- Buying it out
- Request a purchase or prepayment price online.
- At the end
- As in the original contract.
- Contact
- (844) 319-8737
Sources: Spruce Power: home sales and life events; Spruce Power: service charges.
Palmetto LightReach
Palmetto's lease and PPA, sold through independent installers. Whether you get a lease or a PPA depends on your state.
- Term
- 25 years
- Yearly increase
- As written in the contract.
- Selling the house
- Call Palmetto within 60 days before the sale. The plan can be transferred to the new owner, or bought out.
- Buying it out
- Available when you sell; Palmetto's help center explains lease payoff.
- At the end
- As written in the contract.
- Contact
- Palmetto help center
Sources: Palmetto LightReach: selling your home; Palmetto: transferring or buying out a Palmetto system.
Before you rely on any of this
- Find your own numbers. The escalator, buyout schedule and transfer terms are in your contract, usually in the first pages and an exhibit on purchase options.
- The UCC-1 is not a mortgage. The leasing company files it against the equipment, not the house, but title companies still need it released or subordinated at a sale or refinance; that's what the processing fees above are for.
- Buyouts are often scheduled. Many leases offer buyouts at set points, such as year six, and price them at fair market value; ask for a written quote before you plan around one.
- Check the guarantee. If your contract promises a level of production, check whether you're owed money.
Comparing an offer? Lease, PPA or buy. Your company went bankrupt? See who services it now.
More for solar owners
- Is my solar system working?Check a year, a month or the lifetime total against what your system should make.
- Production guarantee checkLease or PPA: see whether the system fell short of the guarantee and what you're owed.
- How to read a California true-up billThe once-a-year solar bill from PG&E, SCE or SDG&E, line by line.
- Selling a house with solarOwned, financed or leased: UCC-1 filings, lease transfers and buyouts.
- Replacing a roof with solar on itRemoving and reinstalling the panels: cost, who does it, and warranties.
- When the installer has gone out of businessWhat still works, who you pay now, and who can fix it.
- Solar company bankruptcy trackerWho services SunPower, Sunnova, PosiGen and other failed companies' contracts now.
- When the leasing company won't answerHow to get a repair or a refund, step by step, in writing.
- Reminders: a spring check and upcoming deadlinesAdd them to your calendar. Nothing is sent to us.
Sources: EnergySage: Sunrun lease contracts, what to watch for; Sunrun: a home seller's guide to service transfer; Sunrun: what happens if I move?; Tesla: how leasing solar with Tesla works; Electrek: Tesla's new solar and Powerwall lease terms (2025); Tesla: real estate questions; Tesla: property and title (UCC-1); SunPower: seller questions about lease assignment and buyout; SunPower Inc.: what the 2024 bankruptcy means for customers; SunStrong Management: contact; Sunnova: restructuring questions for customers; pv magazine USA: Solaris buys Sunnova's assets, SunStrong takes over servicing; Spruce Power: home sales and life events; Spruce Power: service charges; Palmetto LightReach: selling your home; Palmetto: transferring or buying out a Palmetto system; EnergySage: top questions about solar leasing.
General information, not legal or financial advice. Your contract decides.