Solar Pioneer Program
Leasing a Solar System
LIPA offers residential customers the option to finance their solar PV installation through a Lease Agreement or Power Purchase Agreement (PPA), rather than through a contracted purchase-to-own solar PV system. Eligible customers must meet and agree to all the Terms and Conditions as listed on the LIPA Solar Pioneer Program Rebate Application Form for PPAs or Leases.
- Hoes does it work?
- What is the LIPA rebate for PPAs or Lease Agreements?
- How to apply for a PPA or Lease Agreement
LEASE: Leasing a solar PV system is like leasing a car. A company or contractor owns the equipment and you pay to lease it. Lease payments are typically fixed monthly payments which are less over the term of the lease than you would have paid for electricity produced by LIPA.
PPA: With a PPA, a company or contractor owns the equipment and you just pay for the power it produces. PPAs are similar to leases, but the homeowner pays for the electricity, but not the PV system itself. PPAs may vary each month based on the amount of energy produced by the solar system. Under a PPA, you only pay for what is produced during any given month.
The incentives vary depending on the systems size, type of equipment installed, panel orientation, and shading. The rebate is calculated using the Expected Performance Based Buy-down (EPBB) method which allows LIPA to incentivize more efficient and optimally sited solar systems. The EPBB is an up-front incentive payment (rebate) for new grid connected solar PV systems and inverters based on the expected output of the system compared to an ideal solar system installation.
All residential solar PV systems financed through either a PPA or Lease Agreement and applying for a LIPA Solar Pioneer Program Rebate must submit an application packet containing Rebate Processing forms, a fully executed LIPA Solar Pioneer Program Rebate Application (for PPA and Lease Agreements) and Power Asset Management (PAM) forms. All forms are available for download under: