NJ Solar Lease Checklist: 8 Things to Verify Before Signing
Before you sign any solar lease or PPA in New Jersey, make sure you can check off every item on this list. It takes five minutes and protects your savings for the next 20+ years.
1
Your locked monthly payment — get it in writing
This is the whole deal. Confirm the exact monthly payment in the contract — and that it's lower than what you pay your utility now. Get the number in writing, not as a verbal estimate.
2
The annual escalator — aim for 0%
Many leases raise your monthly payment 1–3% every year. Over 20–25 years that adds up fast. Ask for the escalator in writing — a flat (0%) or very low escalator is what keeps your savings growing.
3
Term length and end-of-term options
Most NJ solar leases and PPAs run 20–25 years. Confirm the term, and what happens at the end — renew, buy the system, or have it removed at no cost to you.
4
$0 down — and no hidden fees
A true lease/PPA should require no money down. Watch for setup fees, 'dealer' fees, or balloon payments buried in the paperwork.
5
Who keeps the state solar credits and tax benefits
With a lease, the provider owns the system and keeps New Jersey's solar credits and tax benefits — that's exactly how they can offer you such a low monthly payment. Make sure that trade-off is clear.
6
Production guarantee
A reputable provider guarantees a minimum amount of energy each year and credits you if the system makes less. Get the guarantee and the make-good terms in writing.
7
Transferability if you sell your home
Confirm the lease can be transferred to the next homeowner (almost all can). Ask what the transfer process looks like so it doesn't complicate a future sale.
8
Equipment, warranty, and who handles repairs
Ask which equipment brands are used and confirm the provider — not you — is responsible for maintenance, monitoring, and repairs for the life of the agreement.