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Electricity rates across Southern California are climbing again — with the California Public Utilities Commission approving another round of rate hikes for 2025. Homeowners under SDG&E and SCE are paying over 35¢ per kWh on peak Time-of-Use plans.

Many homeowners are looking into solar energy and battery storage, and some are being approached by companies offering “no-money-down solar leases” that promise low fixed payments, free maintenance, and peace of mind.

At first glance, these lease offers (like those from other solar company) sound convenient — but if you dig deeper, the numbers and long-term benefits tell a very different story.

Let’s break down what’s really going on, why owning your system is far more beneficial, and how US Power makes ownership completely hassle-free for Southern California homeowners.

Why So Many SoCal Homeowners Are Tempted by Solar Leases

Solar leases and Power Purchase Agreements (PPAs) exploded in popularity because they promise:

  • No upfront cost
  • Fixed monthly payment for 20–25 years
  • Maintenance and performance coverage
  • Battery backup options

For families trying to escape high electric bills, these can sound like a perfect solution. A typical solar company lease might charge $229 per month for 25 years with a 0 % escalator, including solar panels and battery storage.

But here’s what’s buried in the fine print that most homeowners don’t realize until years later.

The Hidden Truth About Solar Leases

1. You Don’t Own the System

When you lease, the company owns the solar system on your roof. That means:

  • You don’t qualify for the 30 % federal solar tax credit (the installer claims it instead).
  • You can’t apply for local battery rebates or grid incentive programs.
  • You’ll have to transfer the lease if you sell your home — which often delays closings or scares off buyers.

2. Limited Battery Warranties

Most batteries (like Tesla Powerwall or Qcells Enphase) carry a 10-year manufacturer warranty. Lease companies may extend coverage to 25 years, but that’s a service agreement — not a manufacturer-backed warranty. If the leasing company folds, that coverage disappears.

3. Roof & Removal Costs

When you need to reroof, you can’t hire your own roofer. The leasing company must remove and reinstall the system — often charging $300 per panel or more.

4. Low Compensation for Extra Power

Under California’s Net Billing Tariff (NBT), homeowners get just $0.02–$0.03 per kWh for excess power exported to the grid. Leasing companies factor this into your payment but keep much of the long-term benefit.

5. Still Paying Utility Fees

Even with solar, you’ll still have a monthly bill for non-bypassable charges and grid access — typically $20–$50/month depending on your utility.

Expert Advice: Why Solar Ownership Makes More Financial Sense

Owning your solar system — whether through cash purchase or a low-interest solar loan — gives you control and long-term savings that a lease simply can’t match.

  • You claim the 30 % Federal Clean Energy Credit (through 2025).
  • You build home equity — solar-equipped homes sell faster and for more money.
  • You can upgrade or expand your battery anytime.
  • You’re not locked into a 25-year contract.
  • You control your energy future.

Let’s compare the numbers.

Solar Lease vs. Loan vs. Cash Ownership

OptionUpfront CostFederal Tax CreditSystem OwnershipAvg. Monthly PaymentTotal 25-Year CostEst. 25-Year Savings vs. UtilityBest For
Lease$0✖ NoneSolar Company$229~$68,7009LimitedThose wanting zero maintenance, not equity
Solar Loan$0–$2,000✅ 30 % CreditYou~$180 (avg)~$54,000$30,000–$50,000Homeowners wanting ownership with low upfront
Cash Purchase$0–$2,000✅ 30 % CreditYou$0 after payback (~6 yrs)~$35,000 net$60,000 +Long-term investors or retirees

Why Adding Battery Storage Is Now a Must-Have in 2025

With California’s Net Billing Tariff (NBT) in full effect, batteries aren’t just backup — they’re essential for maximizing your solar investment.

  • Avoid peak pricing: Store excess energy and use it during evening peak rates (~35–40¢ per kWh).
  • Emergency power: Keep your home running during outages and wildfires.
  • Energy independence: Rely less on the grid and protect yourself from unpredictable rate hikes.
  • Higher home resale value: Homes with solar + storage are selling 6 % faster in SoCal markets.

How US Power Makes Solar Ownership Hassle-Free

US Power is a Southern California-based solar brokerage and project management firm — not just another sales company. We partner directly with Qcells, one of the world’s leading solar manufacturers, to offer:

  • Factory-direct pricing on American-made Qcells panels
  • High-efficiency systems engineered for SoCal’s climate
  • Battery-ready installations with seamless backup integration
  • End-to-end project management: permits, design, installation, monitoring
  • Expert guidance on maximizing the 30 % tax credit before it expires

We handle all the paperwork, inspections, and interconnection steps — so you don’t have to deal with the headaches of multiple contractors or leasing companies.

Real-World Impact: SoCal Homeowners Are Saving Big

A typical 7 kW solar + battery system in the Los Angeles or San Diego region can offset up to 95 % of your annual power usage and pay itself off in about 6–8 years.

After that, your electricity is essentially free — while homeowners who lease are still sending $229 every month to Solar Companies.

Even better, under the current Residential Clean Energy Credit, homeowners who act before December 31, 2025 can lock in the full 30 % tax credit before it’s reduced or eliminated.

The Smart Move: Own Your Power, Don’t Rent It

In 2025, energy prices in California are higher than ever, and battery storage has become the key to real energy independence. Leasing might seem easy, but the smartest homeowners are choosing ownership for one simple reason: it pays them back.

Secure Your 30 % Tax Credit Before It’s Gone

The federal solar tax credit is set to sunset for new installations after December 2025. Don’t wait until incentives vanish or rates rise again.

Get a free solar + battery quote today from US Power and see how much you can save.

We’ll handle the paperwork, permits, and installation — so you can start saving immediately and own your energy future with confidence.

Financing & Solar Ownership

Published

November 6, 2025

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