Solar leasing and PPAs in Perth: is renting solar worth it?
Solar power purchase agreements and leasing let Perth households get solar with no upfront cost. But over 10–20 years, ownership almost always comes out ahead. Here's how to compare.
Most Perth households buy their solar system outright or finance it through a personal loan or green loan. But solar power purchase agreements (PPAs) and leasing products also exist, promising solar benefits with no upfront payment.
These products make sense in specific situations. They're a poor choice in others. Here's how to evaluate them.
What is a solar PPA?
In a solar PPA, a third party (the PPA provider) installs, owns, and maintains the solar system on your roof. You agree to buy the electricity the system generates at a fixed per-kWh rate for a term, typically 10–20 years.
You pay for the solar electricity, but you don't own the system.
How it compares to grid electricity:
- PPA rate: typically 15–25c/kWh in the Perth market
- Synergy A1: 33.26c/kWh (effective 1 July 2026)
- Saving: 8–18c per kWh consumed from the solar system
What you don't get:
- Export credits (DEBS): these go to the PPA provider, not you, since they own the system
- Battery storage rights: the PPA provider controls how their asset is used
- Asset value: the system is not yours
What is solar leasing?
A solar lease is similar but structured differently: you pay a fixed monthly fee to have the solar system on your roof. The fee is set to be less than your average monthly electricity saving. You don't buy the electricity from the system: you lease the equipment and use the generation directly.
Leasing is less common in WA than PPAs. The economics are similar in structure.
The ownership comparison
For an entry-level 6.6kW Perth system:
| Purchase (outright) | Solar loan (5yr) | PPA (20yr) | |
|---|---|---|---|
| Upfront cost | ~$7,500 | $0 | $0 |
| Monthly payment | Nil | ~$145/mo (5yr term) | Nil direct |
| PPA/electricity cost | N/A | N/A | ~$480/yr at 18c (1yr) |
| System ownership | Yours immediately | Yours immediately | Provider's (20yr) |
| DEBS export credits | Yours | Yours | Provider's |
| Year 5 cumulative cost | $7,500 total | ~$8,700 total | ~$2,400 paid to PPA |
| Year 10 cumulative | $7,500 | $8,700 | ~$5,000–6,000 to PPA |
| Year 20 cumulative | $7,500 | $8,700 | ~$12,000–15,000 to PPA |
Ownership beats PPA on total cost by year 7–10 in most scenarios, and generates more value from DEBS credits.
The PPA advantage is zero upfront exposure and maintenance included. For households that genuinely cannot access finance or $7,500 of savings, a PPA may be the only path to solar.
Property sale complications
The most significant practical complication with a solar PPA is selling your home.
What happens to the PPA when you sell:
- The PPA is a contract that runs with the property (the system is attached to your roof)
- A buyer typically must either assume the PPA contract, pay a termination fee, or you (the seller) pay the termination fee before settlement
Termination fees: typically the remaining payments discounted to present value, or a flat buyout amount. This can be $3,000–8,000 depending on how far into the contract you are.
Many buyers are reluctant to assume a PPA. Real estate agents report that homes with PPA solar systems can be harder to sell and sometimes require the seller to buy out the PPA at settlement.
With an owned system: a paid-off solar system adds approximately $5,000–$10,000 to property value and is a straightforward positive for buyers (clean title, known asset age).
When a PPA might make sense
Circumstances where PPA is the right choice:
- Your household cannot access a green loan, personal loan, or the upfront capital, and you're renting is not an option (see renters section)
- You're on a short-term horizon (renting the property yourself and owner is installing), though this scenario is rare
- Corporate or commercial rooftop where capital deployment is restricted (the commercial PPA market is larger than residential for this reason)
- You are explicitly averse to any equipment ownership risk (maintenance, inverter replacement) over a 20-year horizon
When to avoid a PPA:
- You plan to sell within 10 years: termination fees typically exceed the accumulated savings
- You can access finance at competitive rates: ownership is almost always better over the medium term
- You want Midday Saver tariff benefit from DEBS peak credits: DEBS goes to the PPA provider
Questions to ask any PPA provider
If you are evaluating a PPA:
- What is the PPA rate at year 1, and what is the escalation clause? (Many PPAs include annual rate increases of 1–3%/year)
- What happens if the inverter fails: who pays and what's the response time?
- What are the termination fees at years 5, 10, 15?
- What rights do I have to upgrade (add battery, replace panels) during the term?
- Is this PPA registered on the property title, and what does a conveyancing lawyer need to know?
Read the full PPA contract before signing: the headline savings rate is not the full picture.
PPA terms and rates vary significantly between providers. The scenarios above are illustrative; obtain quotes for your specific situation. Synergy A1 rate effective 1 July 2026.
Money-relevant figures in this article are checked against primary sources. Here’s how we check our facts.
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