If you’ve been researching solar lately, you may have noticed a wave of new terminology. What used to be called a solar lease or power purchase agreement (PPA) is now sometimes marketed as subscription solar, third-party ownership (TPO), or something else entirely.
So what’s actually changed?
In most cases, the name—not the structure.
This article breaks down what these terms really mean, why the language around them is evolving, and what homeowners should understand before moving forward with a solar project.
Why Are Solar Financing Terms Changing?
As the solar industry has grown, so has its marketing language. Some companies are rebranding traditional lease and PPA financing models with newer, friendlier-sounding terms like subscription solar.
While the names may sound different, the underlying agreements are often more or less the same. That’s why it’s important to look past the label and understand how a system is owned, who benefits financially, and what obligations for both parties come with the contract.
Lease, PPA, TPO, and Subscription Solar: What’s the Difference?
Here’s the simplest way to think about it:
Lease, PPA, TPO, and subscription solar are all forms of third-party ownership.
That means:
- A solar company owns the system installed on your roof
- You do not own the panels or equipment
- You agree to a long-term contract, typically 20–25 years
The differences between these options usually come down to how you pay, not what you’re signing up for.
Solar Lease
You pay a fixed monthly fee for the solar system, regardless of how much electricity it produces.
Power Purchase Agreement (PPA)
You pay for the electricity the system generates, typically for a set forecasted amount of power per payment period at a set price per kilowatt-hour. Oftentimes that price per kilowatt-hour increases over time.
Third-Party Ownership (TPO)
An umbrella term that includes both leases and PPAs.
Subscription Solar
A newer marketing term that generally refers to a lease or PPA—even though the word subscription may suggest more flexibility than the contract actually allows.
Different names. Same fundamental structure.
What All Third-Party Solar Options Have in Common
Regardless of what they’re called, third-party solar agreements typically share these characteristics:
- You do not own the system
- You do not receive ownership-based incentives, such as any state or federal tax credit
- The solar provider controls system changes, upgrades, and removal
- Contracts are long-term and can affect home resale
- Buyout options, if offered, may be limited or expensive
None of these points are inherently good or bad—but they do matter, and homeowners should understand them clearly before signing.
Rebranding can make it harder to compare solar options apples-to-apples.
Terms like subscription solar may sound flexible or short-term, even when the agreement is anything but. That’s why we believe clear, straightforward language is more important than clever naming.
At New England Clean Energy, we focus less on what an option is called and more on helping homeowners understand:
- Who owns the system
- Who benefits financially over time
- How the agreement affects their home long-term
Questions to Ask—No Matter What It’s Called
Before signing a solar contract, homeowners should feel comfortable asking:
- Who owns the solar system?
- How long is the agreement?
- What happens if I sell my home?
- Can I buy the system later—and at what cost?
- Who is responsible for maintenance and repairs?
- What happens at the end of the contract?
- What is the total cost of your payments for the full term of a third party ownership agreement vs a standard solar loan?
- Does your credit rating qualify you for a more traditional solar loan? (Generally, TPO and traditional loans are nearly the same.)
Clear answers to these questions matter far more than the name on the proposal.
Our Approach: Transparency First
Solar is a long-term investment, and homeowners deserve straightforward explanations—not confusing or rebranded terminology.
Whether someone is considering owning their system outright or exploring third-party options, our goal is to make sure they understand the structure, tradeoffs, and long-term implications before moving forward.
Because when it comes to solar, what’s in the contract matters far more than what it’s called!
Have further questions about subscription solar? Give us a call at (978) 567-6527.
If you liked this article, you may also like:
Trials and Tribulations of Third-Party Solar Ownership
The ITC Is Gone — But Solar Isn’t
What Happens After Installation: Our Post-Project Support Process