Should you buy or lease solar panels?
Solar panel financing comes in three distinct forms: outright cash purchase, solar loans, or solar leasing/power purchase agreements (PPAs). Each option offers a different path to harnessing clean, renewable energy for your home. The ideal choice depends on your specific financial situation, long-term goals, and how you prioritize factors like ownership, upfront costs, and overall savings.
Cash Purchase Benefits:
- Maximize your long-term financial returns
- Enjoy immediate electricity savings with no offsetting monthly payments
- Complete ownership from day one
Solar Loan Advantages:
- Minimal initial investment (potentially zero down payment options available)
- Substantial lifetime savings potential
- Monthly utility savings that grow as you pay down your fixed-term loan
- Full ownership benefits once the loan is satisfied
Solar Lease/PPA Benefits:
- Eliminate large upfront expenditures
- Transfer maintenance responsibilities to the provider
- Begin saving immediately with predictable payment structure
- No ownership complexities or responsibilities
The pros and cons of leasing vs. buying solar panels
1
Monthly payments
Choosing a solar lease or PPA typically offers $0 down options but may require an initial deposit depending on the agreement. While immediate savings begin, they’re generally less substantial than with purchased systems. With solar loans, your financial benefits increase over time as you pay down the balance, ultimately eliminating monthly payments altogether once satisfied.
2
Repairs & Maintenance
Lease agreements shift responsibility for system upkeep to the provider—an appealing feature for homeowners seeking hands-off solar benefits. The leasing company handles all maintenance needs and repairs throughout the contract. For purchasers, selecting a provider with comprehensive warranties delivers similar peace of mind while maintaining ownership advantages. It’s worth noting that quality solar systems generally require minimal maintenance throughout their lifespan.
3
Selling your home
When selling a home with leased panels, you must either buy out the remaining lease or transfer the agreement to the new homeowner—potentially complicating your sale. Conversely, owned solar systems typically increase property values and market appeal, often selling faster and for premium prices. This value boost frequently offsets or exceeds your remaining loan balance, effectively recouping your investment.