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Financing & Programs · 4 min read

What Is a Solar Lease Escalator?

Some solar leases have an escalator that increases the lease payment at specified intervals. Not all programs use one.

Read the schedule

Look for the initial payment, percentage or dollar increase, frequency, and total duration. Ask for the expected payments over the complete term, not just the first year.

Compare utility exposure

A rising lease payment and changing utility rates make future comparisons uncertain. Any savings estimate should show its assumptions and limitations.

Confirm contract controls

The signed lease controls the escalator, transfer conditions and any buyout rights. Review it carefully and seek qualified advice if a term is unclear.

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