Going Solar With $0 Down: Leases, PPAs, and Loans Explained

How $0-down solar works

With $0 down, someone other than you pays the upfront cost of the panels. That's either a solar company (with a lease or PPA) or a lender (with a loan). You pay them back over time, ideally less than you were paying the utility for the same electricity.

Lease vs. PPA vs. loan

Look for the "escalator" clause in any lease or PPA. A 2.9% annual increase compounds quickly over 20–25 years.

• Solar lease: you pay a fixed monthly fee to use the panels. The company owns them, maintains them, and keeps any incentives.
• Power purchase agreement (PPA): you pay only for the electricity the panels produce, at a set rate per kWh that often rises each year.
• Solar loan: you own the system from day one and get any incentives you qualify for, but you're responsible for maintenance.
• Cash: the biggest long-term savings, if you can afford the upfront cost.

Incentives: check before you sign

Federal tax credits for homeowner-owned residential systems changed in 2025, and state and utility programs vary widely. Ask each installer for a written list of the incentives they assumed in their savings estimate, and confirm your eligibility with a tax professional.

Also check your utility's net metering policy, meaning how you're credited for the extra power you send back to the grid. It has a big effect on your savings.

Is your home a good fit?

• A roof facing south, east, or west with little shade
• A roof with at least 10–15 years of life left. Re-roofing under panels costs extra.
• High local electricity rates
• A favorable net metering or export policy
• Plans to stay in the home long enough to recoup the cost

Questions to ask every installer

Who owns the panels? Is there a rate escalator? What production does the contract guarantee, and what happens if the system falls short? What happens if I sell my home? Who handles repairs, and what's the workmanship warranty? Compare at least three proposals using the same assumptions.