Prepaid Solar Lease vs Monthly Lease: Which Is Right for Your Home
Written by HyreSolar Research Desk Primary-source research and fact checking
Quick answer
Prepaid Solar Lease vs Monthly Lease comes down to upfront cost, lifetime savings and how long you plan to stay in the home; here is each factor side by side.
A monthly lease costs nothing upfront and charges you every month for 20 or 25 years.
A prepaid lease asks for a large sum on day one, removing or reducing the monthly bill, but you still do not own the panels.
That makes the real comparison three-way: if you have the cash to prepay, you could probably buy a system outright, own it, and keep it after the term.
Prepay only if the price is clearly below the cash price of a comparable system and the contract refunds you for underproduction.
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 instead: typical installed system | $22,100–$27,500 | 14 dated |
No 30% federal credit is subtracted: Section 25D ended for expenditures after December 31, 2025.
Prepaid lease vs monthly lease vs buying
| Prepaid lease | Monthly lease | Buy with cash | |
|---|---|---|---|
| Upfront | Large lump sum | $0 or small deposit | Installed price |
| Monthly payment | None, or reduced | For the full term, possibly escalating | None |
| Owner | Provider | Provider | You |
| Underproduction | Sunrun: prepaid customers refunded the difference each year | Performance guarantee refund | Your loss, beyond warranties |
| Maintenance | Included | Included | Yours |
| After the term | Renew, buy at fair market value, or removal | Same | You keep producing |
| If you sell early | Unused prepayment value rides with the contract; buyer assumes | Buyer qualifies and assumes | Transfers with the house |
Sources: Sunrun Form 10-K for fiscal 2025 (prepayment, refunds, end of term); Fannie Mae Selling Guide B2-3-04.
How a prepaid lease works
Sunrun’s 2025 annual report describes it directly: "some customers choose to prepay an amount upfront, thereby reducing their monthly bill."
The same filing says prepaid customers whose systems underproduce "are refunded the difference at the end of each such year", which is the clause to look for in any prepaid contract.
Without a refund, you have paid in advance for kWh that may never arrive.
Because the provider receives its money on day one, it no longer carries the risk that you stop paying or that the payment escalator mis-forecasts. That should be reflected as a discount against the total of the monthly payments. Ask for both totals in writing.
Savings over 25 years
Prepaid vs monthly: add up every monthly payment over the term, including the escalator, and compare that total with the prepayment. The prepayment wins if it is lower by more than what the cash would have earned elsewhere over the term. The escalator calculator gives you the monthly total.
Prepaid vs buying: this is the comparison that usually decides it. Buying costs the installed price shown above with no federal credit (Section 25D ended December 31, 2025), and you keep the system and its output after year 20 or 25.
A prepaid lease leaves you with nothing at the end except the option to renew or buy at fair market value.
The provider can claim a business credit that you cannot, so a prepaid price below the cash price is possible; if it is not lower, buying is better.
Selling early is the main risk. The buyer takes over a contract whose payments you already made. Whether you recover that value depends on the sale negotiation, and Fannie Mae excludes leased-panel value from the appraisal. See selling with a solar lease.
Which to choose if…
- 1The prepay is well below a comparable cash price and includes yearly underproduction refunds
A prepaid lease can be reasonable, especially if you want maintenance included.
- 2The prepay is close to the cash price
Buy instead; see lease vs buy.
- 3You do not have the lump sum or may move
A monthly lease, or compare a loan.
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 a prepaid solar lease a good idea?
What happens to a prepaid lease if I sell my house?
Do I own the panels after prepaying?
Sources & retrieval dates
- Sunrun Inc., Form 10-K for fiscal 2025 , Agreements typically 20 or 25 years; rates fixed or escalated at a predetermined percentage; optional upfront prepayment, with prepaid customers refunded for underproduction yearly; maintenance included; end-of-term renewal, fair-market-value purchase or removal; transfer-on-sale terms. 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.
- U.S. Department of Energy, Homeowner’s Guide to Going Solar , Leases carry fixed monthly payments based on estimated output; PPAs charge a set price per kilowatt-hour produced; the customer of either does not own the system or its tax benefits. Retrieved 22 October 2026.
- Public Law 119-21 , Section 25D terminated for expenditures after December 31, 2025. 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.