Solar Lease vs. PPA: Which Is Right for Texas Homeowners?

"Lease" and "PPA" get used interchangeably, but they're different contracts with different economics. Here's a plain-English breakdown of how each one works in Texas post-2025.

Solar Lease

You pay a fixed monthly payment to use the solar system on your roof. That payment does not change based on how much energy the panels produce. If the system overproduces, you keep the savings. If it underproduces, you still pay the same fixed rate.

Power Purchase Agreement (PPA)

You pay a per-kWh rate only for the energy the panels actually produce. There's no payment for a month the system is down. Your rate is lower than the utility's, locked in for 20-25 years with a modest annual escalator (typically 0-2.9%).

Which wins in Texas?

For most Texas homeowners, the answer comes down to risk preference. Leases give you pricing certainty. PPAs align your payment to actual production (slightly more favorable in shaded or complex-roof situations). Both are $0-down, both are transferable at home sale, and both are available with Hart Beat Energy.