Buy if you want long-term savings and ownership; lease if you want low upfront cost and no maintenance responsibility
The core question is whether you prefer to own the system and capture its full financial upside or pay a fixed monthly fee for someone else's equipment. Buying typically yields higher lifetime savings but requires a larger initial investment; leasing lowers your barrier to entry but means you do not own the panels and cannot claim the federal solar tax credit yourself.
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Key differences at a glance
| Factor | Buying | Leasing |
|---|---|---|
| Upfront cost | High (cash or loan) | Low or $0 |
| Monthly payment | Loan payment until paid off | Fixed lease payment |
| Electricity bill savings | Full offset minus loan payment | Typically 10–30% reduction |
| Tax credit (federal ITC) | You claim it | Leasing company claims it |
| System ownership | You own it | Leasing company owns it |
| Maintenance responsibility | Homeowner | Leasing company |
| Home resale impact | Adds value | Must be transferred or removed |
When buying makes more sense
You have the capital or qualify for a low-interest solar loan, you plan to stay in the home long enough to recoup the investment, and you want to maximize the 30% federal Investment Tax Credit plus any state incentives. Owned systems also make a home more attractive to buyers, according to real estate research, and you are insulated from rising electricity rates because the panels generate power for decades.
When leasing makes more sense
You want a predictable monthly cost with no maintenance burden, you do not have the tax liability to use the federal credit yourself, or you plan to move within the lease term. A lease can be easier to qualify for than a loan because the leasing company owns the asset, and you avoid the risk of equipment degradation since the provider typically handles repairs and performance guarantees.
Hidden considerations
Leases often include annual escalator clauses that raise your payment over time, and you must disclose the lease to potential buyers, which can complicate a sale. With a purchase, you are responsible for monitoring performance and arranging repairs after the warranty expires, but most reputable installers offer 25-year production warranties that cover equipment defects.
Final decision framework
Run the numbers using your actual electricity usage, local utility rates, and the specific lease terms or loan rates you are offered. If your priority is maximizing lifetime value and you can handle maintenance, buying is generally the stronger choice. If simplicity, no upfront cost, and predictable payments matter more, a lease can be a reasonable path to solar.