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Should You Buy or Lease Solar Panels?

There are four common ways to pay for home solar: buy it outright with cash, finance it with a solar loan, or have a company own the system while you lease it or buy its power through a power purchase agreement (PPA). The right choice comes down to how much you can pay upfront and how much of the long-term saving you want to keep.

Buying (cash or loan)

When you buy, you own the system. That means the largest long-term savings, and the panels typically add value to your home. Paying cash gives the best return; a solar loan spreads the cost over time so you can own the system with little or nothing down, though the interest reduces your total saving.

Leasing and PPAs

With a lease or PPA, a company owns the system on your roof and you pay a fixed monthly amount (lease) or a set price per kWh (PPA). The appeal is little or no upfront cost. The trade-off is smaller savings — the company keeps much of the benefit — and a third-party system on your roof can add a step when you sell the home.

An important change for 2026

Until recently, buying was the clear tax winner because owners could claim the 30% federal tax credit. That credit for owner-occupied systems ended on December 31, 2025. However, third-party-owned systems — leases and PPAs — can still access a federal credit through the end of 2027, which the provider may pass on as lower payments. That narrows the gap that once made buying so much more attractive on tax grounds. Programs change, so confirm what currently applies before you decide, and see solar incentives in 2026.

Which should you choose?

• Buy with cash if you can afford it and want the greatest lifetime savings and home-value benefit.
• Use a solar loan if you want to own the system but spread the cost.
• Lease or take a PPA if avoiding upfront cost matters most and you are comfortable with smaller savings.

The free SunWise solar calculator models a purchase — cash or financed — so you can see the savings and payback that ownership provides. For more, see how long solar takes to pay for itself and how much solar panels cost.