Buy, Lease or Finance Solar? How the Options Compare
How you pay for solar decides who owns the panels, who fixes them, and what happens when you sell. Here is how cash, loans, leases and PPAs compare.
Call to see if your home qualifies(877) 565-3409Home Solar Line connects you with an independent solar provider. We don't sell or install anything ourselves. Calls may be recorded.
- Free call
- No forms to fill out
- Independent local providers
- No obligation
Who this is for
Check all five before you call:
- You own the home (not renting)
- It's a single-family house or townhouse
- The roof gets full sun or only light shade
- Your power bill is over $100 a month
- The home doesn't already have solar panels
Renting, in a condo, apartment or mobile home, under heavy shade, or already have panels? This line can't help with those, so please don't call.
What happens when you call
- Answer a few quick questionsDo you own the home, how much is your power bill, how sunny is the roof.
- Get connectedIf your home fits, you're put through to an independent solar provider who serves your area.
- Talk it through, then decideThey look at your roof and usage and explain options. No obligation to buy.
The four ways to pay
Cash
You own the system from day one and keep all of its savings. Highest upfront cost; the lowest total cost if you have the money.
Solar loan
You own the system and pay it off over time. Compare the rate, the term and any dealer fees built into the price.
Lease
A company owns the panels and you pay a fixed monthly amount to use them. Low upfront cost; the company usually handles maintenance.
PPA (power purchase agreement)
A company owns the panels and you pay for the power they make, at a set rate per unit. Similar to a lease, but the payment moves with production.
What to read in a solar loan
- The cash price and the financed price side by side. Dealer fees can make the financed price much higher.
- The rate, the term, and whether there is a prepayment penalty.
- Whether the payment assumes you will pay down a lump sum later, and what happens to the payment if you don't.
- Whether the lender records a fixture filing against the property, which can come up when you sell or refinance.
What to read in a lease or PPA
- The yearly escalator, if any, and the full term.
- Who maintains, insures and repairs the system, and who fixes roof leaks around it.
- Any promise about how much the system will produce, and what you get if it falls short.
- What happens at the end: removal, renewal or a buyout.
- How a transfer works when you sell, including whether the buyer has to qualify.
Selling a home with solar
An owned, paid-off system usually just goes with the house. With a loan, you typically pay it off at closing or, if the loan allows, the buyer takes it over. With a lease or PPA, the buyer usually has to agree to take over the contract, or you buy it out. Ask about this before you sign, not when you list the house.
Which one fits
Cash fits if
You have the savings, plan to stay in the house, and want the most value from the system over its life.
A loan fits if
You want to own the system without paying upfront, and the loan terms are clear and fair.
A lease or PPA fits if
You don't want to own or maintain equipment and are comfortable with a long contract.
See if solar makes sense for your house.
One free call. Tell a provider about your roof and your bills, and decide from there.
Who this is for
Check all five before you call:
- You own the home (not renting)
- It's a single-family house or townhouse
- The roof gets full sun or only light shade
- Your power bill is over $100 a month
- The home doesn't already have solar panels
Renting, in a condo, apartment or mobile home, under heavy shade, or already have panels? This line can't help with those, so please don't call.
Questions
What about the federal credit?
The federal residential clean energy tax credit no longer applies to home systems placed in service after 2025, so be wary of any pitch built around it. Some states, utilities and local programs have their own incentives, so ask a provider what applies to your address.
Does a lease mean solar costs nothing?
No. You pay monthly for the system or its power, usually for many years. Read the whole contract.
Are you a solar company?
No. Home Solar Line is a free phone line that connects homeowners with independent solar providers. We don't sell, design or install systems, and we don't set prices.
Does the call cost anything?
No. The call is free, and there's no obligation to buy anything from the provider you talk to.
Who qualifies?
Homeowners in a single-family house or townhouse with a roof that gets full or mostly full sun, a power bill over $100 a month, and no solar panels already. If that's not you, the provider won't be able to help.
How do I check the provider?
Ask for their contractor license (if your state requires one) and proof of insurance before signing anything. It's on you as the homeowner to check.