Solar Lease vs Buy: Which Is Right for Your Home
Written by HyreSolar Research Desk Primary-source research and fact checking
Quick answer
Solar Lease vs Buy comes down to upfront cost, lifetime savings and how long you plan to stay in the home; here is each factor side by side.
Buying (cash or loan) means you pay the installed price, keep every kilowatt-hour of savings and own a system that adds to the sale of the house.
Leasing means a company owns the panels, you pay it monthly, and the savings are whatever your bill drops by minus that payment.
Since the homeowner credit (Section 25D) ended on December 31, 2025, the leasing company can still claim a federal business credit under Section 48E and you cannot, which is the main reason lease offers have become more competitive in 2026.
Cost side by side
Installed prices as other publishers state them, gross of incentives. Each range is the median published low to the median published high across at least 12 dated sources, retrieved October 21–22, 2026; the source rows sit on the linked cost page.
| Option | Published range | Sources |
|---|---|---|
| Buying: typical installed system | $22,100–$27,500 | 14 dated |
| Buying: installed price per watt | $2.58/W–$3.36/W | 21 dated |
No 30% federal credit is subtracted: Section 25D ended for expenditures after December 31, 2025.
Lease vs buy on the factors that differ
| Lease | Buy (cash or loan) | |
|---|---|---|
| Upfront cost | Usually $0 or a small deposit; a prepaid lease pays the whole term upfront | The installed price, either in cash or financed |
| Who owns the panels | The leasing company | You |
| Federal tax credit | The lessor may claim Section 48E; you claim nothing | None: Section 25D ended for expenditures after Dec 31, 2025 |
| Monthly cost | A fixed or escalating lease payment for the term | Loan payment if financed, nothing if cash |
| Maintenance and repairs | Normally the owner’s job under the contract | Yours, beyond the manufacturer and workmanship warranties |
| Selling the house | Buyer must credit-qualify with the provider to assume the lease | Owned outright: transfers with the house. Financed: lien is paid off or subordinated |
| Mortgage treatment | Lease value excluded from appraised value; payment counts in the buyer’s debt ratio (Fannie Mae) | Owned panels can count toward value when ownership is documented |
Ownership and mortgage rows: Fannie Mae Selling Guide B2-3-04. Tax rows: Public Law 119-21 and IRS Notice 2025-42.
Who stands behind the work also depends on which company signs the contract: see national vs local installer.
Savings over 25 years
Buying produces the larger lifetime saving whenever the system’s output is worth more than the installed price plus any financing cost. A lease can never beat ownership on the same system over the same term unless the lessor passes some of its tax credit back to you through a lower payment, because the lessor has to recover the equipment, the installation and its own profit from your payments.
That is why the 48E credit matters to this decision. The leasing company owns the system as a business asset, so it can claim the Section 48E clean electricity investment credit; for solar, that credit ends for facilities placed in service after December 31, 2027 unless construction began by July 4, 2026 (IRS Notice 2025-42).
A homeowner who buys gets no federal credit at all. In 2026 and 2027, then, part of the gap between lease and purchase can be closed by the lessor’s credit, and it is worth asking any lease provider how much of it is reflected in your rate.
The escalator decides most leases. Many lease and PPA contracts raise the payment by a fixed percentage each year.
A small yearly rise compounds over 20 to 25 years into a much larger final payment, while your utility’s rates may rise faster or slower.
Put the contract’s own payment and escalator into the escalator calculator and compare both paths over the same term in the lease vs buy calculator; we do not print a "typical" saving because it depends on your rate, your utility’s export rule and your roof.
A loan is not a cheaper version of cash. The CFPB found in 2024 that solar lenders often add a fee to the loan principal, typically 10 to 30 percent of the cash price and sometimes more than 50 percent, while advertising a low rate.
If you buy with a loan, ask for the cash price first and compare against it (see cash vs loan).
What happens when you sell
Owned outright, there is little to do: the panels are part of the house. With a loan, a fixture filing recorded ahead of the buyer’s mortgage must be subordinated or the loan paid off, which Fannie Mae requires before it will buy the mortgage.
With a lease, your buyer has to qualify with a company that is not part of your sale. Sunrun’s 2025 annual report states that the buyer must meet its credit requirements, and that if the customer neither buys out nor assigns the agreement, it may "look to the original customer to pay all remaining payments due."
Read the transfer clause before you sign if you might move within the term. More on this at selling with a solar loan or lease.
Which to choose if…
- 1You can pay cash or borrow cheaply and plan to stay
Buy. You keep all the savings, and the system transfers with the house.
- 2You have no tax liability, little cash and want a lower bill now
A lease can work, provided the first-year payment is below your current bill and the escalator does not outrun your utility’s rates.
- 3You may sell within a few years
Lean to cash or a loan you can pay off at closing; a lease adds a third party to your sale.
- 4You want someone else responsible for repairs
A lease places maintenance on the owner. On a purchase, check the workmanship warranty (see workmanship vs manufacturer warranty).
When you are ready
Ready to explore solar for your home?
If you have done your research and want to speak with a solar professional, HyreSolar can help you explore available options.
Free, with no obligation: a person at HyreSolar reads your request and gets back to you about it. Matching with solar professionals is not live yet, so this is not a quote, and nothing is shared with anyone until you agree.
Keep learningQuestions
Is it better to lease or buy solar panels in 2026?
Can I still get the 30% tax credit if I buy?
Can I buy out a solar lease later?
Does a leased system raise my home’s value?
Sources & retrieval dates
- Public Law 119-21 (One Big Beautiful Bill Act) , Termination of Section 25D for expenditures after December 31, 2025, and the Section 48E solar timetable. Retrieved 22 October 2026.
- IRS Notice 2025-42 , Beginning-of-construction rules: wind and solar facilities beginning construction after July 4, 2026 must be placed in service by December 31, 2027. Retrieved 22 October 2026.
- Fannie Mae Selling Guide, B2-3-04 Properties with Solar Panels , Leased and PPA panel value excluded from appraised value; payments in the debt ratio; senior fixture filings must be subordinated. Retrieved 22 October 2026.
- CFPB, Solar Financing Market Issue Spotlight (August 2024) , Hidden fees in loan principal typically 10 to 30 percent of the cash price, can exceed 50 percent. Retrieved 22 October 2026.
- Sunrun Inc., Form 10-K for fiscal 2025 , Transfer-on-sale terms, including recourse to the original customer. Retrieved 22 October 2026.
HyreSolar does not install, finance or sell solar. This page is general information, not tax, legal or financial advice; terms, prices and rules vary by state, utility and contract.