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What Is Solar-as-a-Service?
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Solar-as-a-service is a model that allows homeowners to use solar energy without purchasing or owning the system upfront. Instead, a third-party provider installs, owns, and maintains the system while the homeowner pays for the energy it produces or a fixed monthly fee.
This approach removes the need for large upfront costs and ongoing system management, making solar more accessible to a wider range of homeowners.
According to the U.S. Department of Energy, third-party ownership models have played a significant role in expanding residential solar adoption by lowering barriers to entry1.
How solar-as-a-service works
Solar-as-a-service shifts system ownership and responsibility to a provider while the homeowner benefits from solar energy.
Typical structure:
A provider installs a solar system on the home
The provider owns and maintains the system
The homeowner pays for solar through a monthly plan or energy usage agreement
The provider monitors system performance and handles service
This model allows homeowners to access solar energy without managing installation, maintenance, or repairs.
Why solar-as-a-service matters
Solar-as-a-service has become one of the most common ways homeowners go solar.
Reasons include:
Eliminates or reduces upfront costs
Includes ongoing monitoring and maintenance
Simplifies the solar experience for homeowners
Expands access to solar across different income levels
The Solar Energy Industries Association notes that third-party ownership models have been a major driver of residential solar growth in the U.S.2
Subscription style solar and storage plans
Solar-as-a-service is often delivered through subscription-style plans like the Sunrun Subscription Plan which typically include:
Little to no upfront cost for solar and battery system installation
A predictable monthly payment structure
Ongoing system monitoring, maintenance, and service included
Long-term support without the homeowner needing to manage the system
Solar-as-a-service vs. system ownership
Solar-as-a-service differs from purchasing a solar system outright.
Solar-as-a-service: provider owns and maintains the system; homeowner pays for usage or access
Ownership: homeowner purchases the system and is responsible for maintenance and performance
Each model offers different considerations depending on financial preferences, long-term plans, and desired level of involvement.
How solar-as-a-service fits into today’s energy landscape
Solar-as-a-service is increasingly aligned with how modern energy systems are evolving.
Supports distributed energy across many homes
Reduces barriers to renewable energy adoption
Integrates with battery storage and grid services
Enables more flexible energy usage models
The U.S. Department of Energy highlights that distributed energy resources, including residential solar, are an important part of the future energy system1.
Takeaways
Solar-as-a-service allows homeowners to use solar without owning the system
A provider installs, owns, and maintains the system
Homeowners typically pay through a monthly or usage-based plan
Subscription-style models, like those offered by Sunrun, are a common way this model is delivered
This approach has helped expand access to solar energy across the U.S.
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Sources
1. U.S. Department of Energy
2. Solar Energy Industries Association