What SunRun does and how it differs from buying panels outright

SunRun is a solar company that installs panels on your roof and owns them. You don't buy the panels or own the system — instead, you pay SunRun a monthly bill for the electricity the panels produce. This is called a solar lease or power purchase agreement (PPA), depending on the contract structure. The company handles installation, maintenance, and repairs for the life of the agreement, which is typically 20 to 25 years.

This model is different from buying panels outright, where you own the system, claim tax credits, and keep all the electricity savings. With SunRun, you get lower upfront costs — often zero dollars down — but you don't own the equipment and you don't claim the federal tax credit. Your monthly payment is usually lower than your current electricity bill, which is how you save money over time.

SunRun operates in most U.S. states except a few with regulatory restrictions. The company also owns Vivint Solar, which operates under the same model in some regions. Both are subsidiaries of the same parent company.

Key Takeaways

  • SunRun installs and owns the solar panels; you pay a monthly fee for the electricity they produce instead of buying the system yourself.
  • There is typically no money down, but you sign a 20- to 25-year contract and cannot take the federal solar tax credit.
  • Your monthly payment should be lower than your current electricity bill, but the exact savings depend on your location, roof condition, and current utility rates.
  • SunRun handles all maintenance and repairs, and the company is responsible if panels stop working during the contract term.
  • If you sell your home, the new owner can take over the contract, pay it off, or you may need to pay a buyout fee depending on the agreement terms.

How the contract works and what you actually pay

When you sign with SunRun, you enter a lease or PPA agreement. Under a lease, you pay a fixed monthly amount regardless of how much electricity the panels produce. Under a PPA, you pay per kilowatt-hour of electricity generated, so your bill varies with production. SunRun typically offers both options, and the choice affects your monthly costs and your risk if production is lower than expected.

The contract locks in your rate for the full term — usually 20 or 25 years. This means your payment stays the same or increases by a small percentage each year (often 2 to 3 percent), while your utility company's rates typically rise faster. That rate difference is where your savings come from. However, you are still responsible for paying your utility company for any electricity you use that the panels don't produce, especially at night or on cloudy days.

SunRun handles permitting, installation, and inspections. The company also monitors the system remotely and sends technicians if repairs are needed. You don't pay extra for maintenance — it's included in your monthly fee.

Upfront costs and what happens during installation

SunRun advertises zero-down installation, which means you don't pay money upfront to have panels installed. However, "zero down" does not mean free. You begin making monthly payments once the system is activated, usually 30 to 60 days after installation starts. Some customers report additional costs for electrical upgrades or roof repairs if your roof is not in good condition, though SunRun typically inspects the roof before offering a contract.

Installation usually takes one to three days. SunRun's crew will assess your roof, run electrical lines, mount the panels, and connect the system to your home and the grid. You will need to be home during this time. After installation, a city or county inspector must approve the system before it turns on — this inspection is part of the permitting process that SunRun handles.

The company will also install a monitoring device so you can see how much electricity your panels are producing in real time through a mobile app or online portal.

Tax credits, incentives, and who actually gets the money

The federal solar investment tax credit (ITC) allows homeowners who buy solar panels to claim 30 percent of the installation cost on their federal taxes. However, if SunRun owns the panels, the company claims the credit, not you. This is one of the main trade-offs: you avoid the upfront cost, but you don't receive the tax benefit.

Some states and local utilities offer additional rebates or incentives for going solar. SunRun may pass some of these through to you as a lower monthly payment, but the company typically keeps the federal tax credit and any state credits tied to system ownership. Before signing, ask SunRun which incentives are available in your area and whether any will reduce your monthly payment.

Net metering is another factor. If your panels produce more electricity than you use, some utility companies credit your account for the excess power. SunRun's contract usually allows you to keep these credits, which can lower your bill further. However, net metering rules vary by state and utility, so confirm what applies to your address.

What happens if you move or sell your home

SunRun's contract is tied to your home, not to you personally. If you sell, the new owner can take over the contract and continue making monthly payments. Many buyers view an existing solar contract as a benefit because they inherit lower electricity costs without paying for installation. However, some buyers may not want to assume a 20-year obligation.

If the new owner refuses to take over the contract, you have two options: pay SunRun a buyout fee to end the agreement early, or continue paying the monthly bill even after you move. The buyout fee is typically several thousand dollars and is calculated based on the remaining contract term and the system's estimated production. This cost can be a surprise, so it's worth asking SunRun for a sample buyout figure before you sign.

Some SunRun contracts allow you to transfer the agreement to a new address if you move within the same service area, though this is less common and depends on the system's production capacity at the new location.

Maintenance, repairs, and what SunRun covers

SunRun is responsible for keeping the system working throughout the contract term. If panels fail, inverters break down, or wiring needs repair, SunRun sends a technician at no extra charge. The company also handles cleaning if production drops due to dirt or debris, though this is usually only done if it's a significant problem.

You are responsible for keeping the area around the panels clear — for example, trimming tree branches that shade the system or removing snow buildup in winter. You should also notify SunRun when ready if you notice a drop in production or any visible damage.

The panels themselves typically come with a 25-year manufacturer's warranty covering defects. SunRun's service agreement covers labor and parts for repairs. If the system fails and cannot be repaired, SunRun is obligated to replace it or provide a credit toward your bill, depending on the contract language.

Comparing SunRun to buying panels or using other solar companies

If you buy panels outright or finance them with a loan, you own the system and claim the 30 percent federal tax credit. This can save you $5,000 to $10,000 or more, depending on your system size and local costs. You also keep all electricity savings and can remove the panels if you move. However, you pay for installation upfront and are responsible for maintenance and repairs after the manufacturer's warranty expires.

Other solar companies offer similar lease and PPA models to SunRun, including Sunrun's subsidiary Vivint Solar, as well as competitors like Sungevity (now part of Vivint), Sunpower, and regional installers. Some companies offer better rates in specific areas, so getting quotes from multiple providers is worth your time. The contract terms, monthly payments, and buyout fees can vary significantly.

A solar loan is another option: you borrow money to buy the panels, own the system, and claim the tax credit, but you make monthly loan payments instead of lease payments. Loans typically have shorter terms (10 to 15 years) than leases, so you own the system outright sooner and can keep the electricity savings for longer.

Common issues and what to watch for before signing

Read the contract carefully before signing. Pay attention to the escalation clause — the percentage your payment increases each year. A 2 percent annual increase is common, but some contracts allow 3 percent or higher. Over 25 years, this compounds significantly. Also check the buyout fee formula and whether it decreases over time or stays fixed.

Confirm that your roof is in good condition and will last the contract term. If your roof needs replacement in 10 years, you will have to pay to remove the panels, replace the roof, and reinstall the panels — a cost SunRun won't cover. Some customers report that SunRun required roof repairs or replacement before installation, which added unexpected costs.

Ask about production guarantees. Most contracts may provide that the system will produce a certain amount of electricity. If it produces less, SunRun may owe you a credit. Understand what happens if production falls short and how the company calculates the may provide.

Frequently Asked Questions

Do I need good credit to get a SunRun contract?

SunRun typically runs a credit check, but the company works with a wider range of credit scores than traditional lenders. If you have fair or poor credit, you may still may have access to, though your interest rate or monthly payment could be higher. Contact SunRun directly for information about credit requirements in your area.

What if my electricity usage goes down and I produce more than I need?

Most utilities credit your account for excess electricity through net metering. You keep these credits and can use them to offset future bills. However, net metering rules vary by state and utility company, so confirm the rules for your specific address before signing.

Can I remove the panels if I don't like them?

You can request removal, but you will owe the buyout fee to end the contract early. This fee is typically several thousand dollars. Removal itself is not free either — SunRun will charge you for labor and disposal. It's much less expensive to keep the system or transfer the contract to a new owner.

What if SunRun goes out of business?

SunRun is one of the largest solar companies in the United States and is publicly traded. If the company were acquired or restructured, your contract would likely transfer to the new owner. However, this is a legitimate concern with smaller solar companies, so it's reasonable to research the company's financial stability before signing a 25-year agreement.

How much money will I actually save?

Savings depend on your current electricity bill, local utility rates, how much sun your roof gets, and your contract terms. SunRun provides an estimate during the sales process, but actual savings vary. Compare the estimated monthly payment to your current bill and ask SunRun for a year-by-year projection over the contract term, including the annual rate increases.