What are the different types of solar contracts?
Cash Purchase: You make a full outright purchase of a solar system, either through an upfront cash payment or financing through a third-party lender. You own the system.
Loan Purchase: You sign up to purchase a system from Tesla and choose to finance it with a loan through one of Tesla's financing partners. The monthly payments are calculated with the assumption that you will make a one-time payment within the first 18 months of ownership equal to the estimated Federal Tax Credit for the system. This one-time payment allows you to maintain your monthly loan payment amounts. You own the system.
Subscription: You pay a fixed monthly fee to benefit from the energy produced by the system. Subscribing to solar allows you to go solar without the higher upfront costs of purchasing a solar panel system. Your system is owned and maintained by Tesla.
MyPower Loan: You finance the purchase of a solar panel system through a loan from Tesla and pay variable payments over a set term. Your monthly payments are calculated based on your system’s production and are applied towards the purchase of the system. You own the system.
Power Purchase Agreement (PPA): You pay monthly for the power produced by the system at a certain kWh rate, which may increase slightly each year, as detailed in your agreement. Your system is owned and maintained by Tesla.
Lease: You pay monthly for the use of the system and benefit from the power it produces. There is a fixed monthly payment, which may increase slightly each year, as detailed in your agreement. Your system is owned and maintained by Tesla.