What is third-party solar financing?

Third-party financing is a well-established financing solution in the United States, having emerged in the solar industry as one of the most popular methods of solar financing. Third-party solar financing predominantly occurs in two forms: solar leases and power purchase agreements (PPAs).

What are the different types of third-party ownership models in solar energy?

There are several different types of third-party ownership models in solar energy, including power purchase agreements (PPAs) and solar leases. In a PPA, the consumer agrees to purchase the electricity generated by the solar panels at a fixed rate for a set period of time, typically 10-20 years.

Can third-party ownership make a solar install more affordable?

With the days of zero-interest loans a thing of the past (for now), homeowners and solar companies have sought out ways to make a solar install more affordable. Enter third-party ownership (TPO). According to reports, TPO volumes increased by 32% in 2023. This trend continued through Q3 of 2024 with TPO market share growing to 43% nationally.

Which states authorize third-party PPAs for solar PV?

This map of the United States shows which states and territories authorize the third-party PPAs for solar PV, which includes at least 28 states (plus Washington, D.C., and Puerto Rico). This map and information are provided as a public service and do not constitute legal advice.

Should I sign with a third-party energy service after installing a solar system?

In most cases, signing with a third-party energy service after installing a solar system could cost you a lot of money due to the potential loss of net metering.

How does a third-party energy supplier work?

A third-party electricity supplier buys energy in bulk from the utility and then sells it to consumers at a different rate (often less than the utility's rate, at least initially). They act as go-betweens or middlemen. These companies can help you reduce your energy costs sometimes, but not always.