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Solar leases and PPAs start cheap. But the fine print includes a 2-3% annual escalator. By year 15, you could be paying more than your electric bill would have been. Here is what solar companies will not tell you.
An escalator clause is a provision buried in solar lease and PPA (Power Purchase Agreement) contracts that automatically increases your monthly payment by 2-3% every year. It is not optional. It is not negotiable in most contracts. And it is the single biggest reason solar leases cost more than they should.
"Utility rates go up 3-5% per year, so even with the escalator, your solar payment will always be lower than the grid." That is the pitch. But here is the problem: your solar payment is now ALSO going up. You have traded one escalating bill for another — except this one comes with a 20-25 year contract you cannot easily exit.
Example: $130/month lease with a 2.5% annual escalator
Year 1
$130
Year 10
$166
Year 20
$213
Year 25
$243
That is an 87% increase from your starting payment — and you still do not own the panels.
Here is what happens when you compare a typical solar lease with a 2.5% escalator, a fixed Propel payment, and your projected utility bill over 25 years. The numbers speak for themselves.
| Year | Lease (2.5%/yr) | Propel (Fixed) | Utility (3.5%/yr) |
|---|---|---|---|
| Year 1 | $130/mo | $184/mo | $245/mo |
| Year 5 | $144/mo | $184/mo | $282/mo |
| Year 10 | $163/mo | $184/mo | $334/mo |
| Year 15CROSSOVER | $185/mo | $184/mo | $396/mo |
| Year 20 | $210/mo | $184/mo | $470/mo |
| Year 25 | $239/mo | $184/mo | $557/mo |
By year 15, the lease payment exceeds the fixed Propel payment. By year 25, you have paid roughly $52,000 on the lease vs $55,200 on Propel. The dollar totals look similar — but with Propel, you own the system after year 5. That means approximately 20 years of $0 monthly payments, plus $15,000-$25,000 in added home value. The lease gives you nothing but a transfer headache when you sell.
Before you sign a solar lease or PPA, look for these five warning signs. Any one of them should give you pause. If your contract has all five, walk away.
Your payment is guaranteed to go up every single year. A $130/month payment becomes $239/month by year 25. The solar company is betting that utility rates rise even faster, but that bet is with YOUR money.
You are locked into a contract for two decades or more with zero ownership. At the end of 25 years, you have paid $52,000+ and own nothing. The panels on your roof belong to someone else.
When you sell your home, the buyer must agree to assume your solar lease. Many buyers refuse, delaying or killing the sale. Real estate agents report lease transfers add 30-60 days to closings.
Want out? Expect to pay $5,000-$15,000 in early termination fees. Some contracts base the fee on the net present value of remaining payments, which can be even higher in the early years.
Owned solar adds $15,000-$25,000 to home value (Zillow/NREL data). Leased solar adds $0 because you do not own it. In some cases, leased panels actually make your home harder to sell.
Propel is a hybrid financing structure available in Maine and Texas. It gives you everything a lease promises — $0 down, lower monthly payments — without the escalator, without the 25-year lock-in, and with actual ownership.
| Feature | Solar Lease / PPA | Propel (Fixed) |
|---|---|---|
| Monthly payment | Starts low, escalates 2-3%/yr | Fixed for entire term |
| Ownership | Never — company owns panels | You own by year 5 |
| Home value impact | $0 (you do not own it) | +$15K-$25K (you own it) |
| Down payment | $0 down | $0 down |
| Contract length | 20-25 years | ~5 years to ownership |
| Home sale | Buyer must assume lease | Clean sale — you own it |
| 25-year total cost | ~$52,000+ | ~$55,200 (then $0/mo) |
Day-one savings: $61/mo with Propel vs $50/mo with lease. By year 10, the lease payment has risen to $250/mo while Propel stays at $184.
The trap: The lease starts $5/mo cheaper. But by year 7, the escalating lease payment exceeds Propel. By year 15, you are paying $185/mo on the lease vs $135/mo on Propel — and you still do not own the panels.
Since the residential 25D solar tax credit expired on December 31, 2025, homeowners can no longer claim any federal solar credit on a cash or loan purchase. But the Section 48 commercial ITC still exists for projects beginning construction before July 4, 2026. With Propel, a third-party financing company owns the system initially and claims the 30% ITC. That savings is passed through to you as a lower, fixed monthly payment. Full ownership transfers to you around year 5. The system uses American-made Silfab 440W panels (FEOC compliant) to qualify.
We believe in honesty, even when it does not benefit us. Solar leases are not always wrong. There are specific situations where a lease makes sense.
Propel makes ownership accessible with $0 down — available in Maine and Texas.
Solar leases lock you into 25 years of escalating payments with zero ownership. Propel gives you $0 down, a fixed payment that never changes, and full ownership by year 5. See if you qualify in 60 seconds.
