Lease to Own

What is Lease-to-Own in the Solar Industry?

Lease-to-own is a solar financing arrangement where you pay for the use of a solar power system through regular installments, with the goal of owning the system once you complete the agreed payments.

It lets you install solar panels without paying the entire project cost upfront. Instead, you spread the cost over time.

With lease-to-own, you pay for the solar power system itself in agreed installments, and it becomes yours once you complete the payments, according to the contract. With a Power Purchase Agreement (PPA), a third-party investor funds and owns the system during the contract term and you pay only for the electricity it generates, with ownership transferring to you at the end of the term.

1. How lease-to-own works

The exact structure matters: some contracts transfer ownership automatically after the final installment, while others require a buyout payment or a separate transfer document.

2. Example: Lease-to-own solar package

Suppose you are a homeowner or small business getting a 10 kW hybrid solar system from SUNGROW ENERGY.

These figures are illustrative, not a market quotation.

Item	Example
Total solar system price	₱500,000
Initial down payment	₱50,000
Remaining balance	₱450,000
Payment period	60 months
Monthly installment, before interest	₱7,500
Total paid over 5 years	₱500,000

In this example, you pay ₱50,000 upfront and ₱7,500 per month for 60 months. The total payment is ₱500,000, excluding any additional fees or interest.

After you complete the contract, you own the solar system, provided the agreement specifies that ownership transfers at that point.

3. Your payments over five years

Consider a 10 kW solar package sold for ₱500,000, with a ₱50,000 down payment and 60 monthly installments of ₱7,500.

Your payment structure

This is your total of contractual payments in the example, excluding any additional fees or interest. Your actual payments depend on the terms of your contract.