Should I Lease or Buy Solar Panels?
Buying solar panels typically delivers more financial return over time, while leasing reduces upfront cost and shifts maintenance to the provider. The right choice depends on your budget, tax situation, and how long you plan to stay in the property.
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How Buying Solar Panels Works
When you purchase a system outright or with a loan, you own the equipment and the renewable energy credits. You claim the federal solar investment tax credit and any state incentives, which can slash the net cost by 30 percent or more. A owned system raises property value and locks in electricity costs for 25 years or longer.
Key buying considerations
- Higher upfront cost or loan payments
- You are responsible for maintenance and repairs
- You receive all tax credits and incentives
- System ownership transfers with the home
How Leasing Solar Panels Works
A lease or power purchase agreement means the leasing company owns the panels on your roof. You pay a fixed monthly lease or a per-kilowatt rate for the electricity generated. There is usually little or no money down, and the provider handles maintenance.
Key leasing considerations
- Lower or zero upfront cost
- No responsibility for repairs or system performance
- You do not claim the federal tax credit
- Leases can complicate home sales
Lease vs Buy Comparison
| Attribute | Buying | Leasing |
|---|---|---|
| Upfront cost | High | Low or none |
| Tax credits | Yes | No |
| Electricity savings | Higher long-term | Moderate |
| Home resale value | Increases | Neutral or complex |
| Maintenance responsibility | Owner | Provider |
Which Option Fits Your Situation
Buy if you can afford the initial investment, want maximum savings, plan to stay in the home for a decade or more, and can use the tax credit. Lease if you prefer a predictable monthly cost, cannot take advantage of the tax credit, or want a no-hassle setup with no maintenance burden.