Solar Lease vs. Buy: Which Saves You More?

Buying (cash or loan)

You own the system, keep all the savings, and receive any incentives you qualify for. Owned systems can also add to your home's value. In exchange, you pay upfront or make loan payments and handle maintenance and repairs after the warranty period.

• Pros: biggest long-term savings, ownership, and incentives go to you
• Cons: upfront cost or loan, and maintenance is your responsibility

Leasing or a PPA

A solar company installs and owns the panels on your roof. With a lease you pay a fixed monthly amount; with a PPA you pay per kWh produced. Maintenance and monitoring are included.

• Pros: $0 down, no maintenance, and predictable costs
• Cons: smaller savings, possible annual escalators, and the company keeps the incentives
• Watch for: 20–25 year contracts, escalator clauses, and buyout terms

What happens when you sell your home?

With an owned system, the panels simply convey with the house. With a lease or PPA, the buyer usually has to qualify for and take over the contract, or you may need to buy it out. Some buyers and lenders hesitate, so ask any solar company for its transfer process in writing.

Which is right for you?

If you have the cash or can get a low-rate loan, and you plan to stay at least 10–12 years (about how long the average system takes to pay for itself), buying is usually the better financial move. If you want lower bills right away with no responsibilities, or you don't have enough tax liability to use credits, a lease or PPA without an escalator can still make sense.