Solar Lease vs Buying Panels
**Leasing/PPA** offers low upfront cost but you may not own the tax credits. **Buying** (cash or loan) captures incentives and adds home value—if you stay long enough to pay back.
Step by step
1. Net system cost
Purchase price minus federal/local incentives you actually receive.
2. kWh savings
Utility rate × production minus connection fees.
3. Exit terms
Lease transfer on home sale vs owned system payoff.
Lease vs buy
Buy often wins on lifetime savings if you can use tax credits; lease wins on zero-down simplicity.
- Lease / PPA: Low upfront; escalator clauses; third-party owns system.
- Purchase: Higher upfront; ITC to owner; payoff then free power.
Use our calculators
Common mistakes
- Ignoring escalator in lease
- Sizing system without usage audit
FAQ
Do leases hurt home sales?
Buyers must qualify to assume lease—owned systems are simpler.